Sierra Minerals Closes First Tranche of Private Placement

Sierra Minerals, Inc. has announced the closing of the first tranche of its private placement. 8 million units went at a price of 20 cents each, so Sierra got 1.6 million gross from the deal. Details in this news release, which also has the terms of a new debt agreement with Warman Investments, Pty. The new loan is for $500,000 less than the old one from Warman, which has been closed with this new deal, principal repayment of $500,000, and payment of accrued and unpaid interest of $190,000. The proceeds wll go to expanding production at its Cerro Colorado mine in Mexico.

Unusually for a private placement, this one went for higher than the current stock price. Sierra last traded on Friday at 19 cents, and currently has 15 cents bid, 19 cents asked. The last time it got above the 20-cent PP price was on February 13th, and that level didn't hold.

Sierra Minerals Inc.'s Google Finance page is here.

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