REG - Guanajuato Silver Co - US$7.5 Million Credit Facility Closed

Guanajuato SilverAnnouncement

05/12/2023 13:00

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RNS Number : 7194V  Guanajuato Silver Company Ltd.  05 December 2023

 
 

Guanajuato Silver Closes US$7.5 Million Credit Facility

 

Guanajuato Silver Company Ltd. (the "Company" or "GSilver")
(TSXV:GSVR)(OTCQX:GSVRF) is pleased to announce that it has closed  a US$7.5
million Gold Loan Credit Facility financing (the "Facility") with Ocean
Partners UK Ltd. ("Ocean Partners") .  The unsecured loan facility is for a
term of 36 months, is repayable in equal fixed monthly installments of gold
totalling approximately 191 troy ounces per month for a period of 30 months,
following a six-month grace period. The number of ounces to be delivered per
month is based on a discount to the LBMA (London Bullion Market Association)
gold closing price of US$2,046.95 on November 29, 2023.

 

James Anderson, Chairman & CEO, said, "Ocean Partners has been our
preferred metals trading partner since our first sale of precious metals
concentrates back in 2021; they have always been first-in-line to offer
support for our strategic initiatives as we continue to grow GSilver into a
mid-tier producer of precious metals in Mexico."

 

As reported on November 24, 2023, GSilver had two outstanding loans due to
Ocean Partners totalling  approximately US$8.4 million (See MD&A for the
three months ended September 30, 2023
(https://gsilver.com/images/investor/2022/GSilver_MDA_Q3_2023_-_Final.pdf) ).
Approximately US$4.6 million of the new Facility will be used to extinguish in
full one of the outstanding loans due to Ocean Partners; the remainder of the
funds will be used for capex initiatives at the Company's El Cubo Mines
Complex and Valenciana Mines Complex, as well as for general working capital
purposes.

 

For further information regarding Guanajuato Silver Company Ltd., please
contact:

 

JJ Jennex, Gerente de Comunicaciones, T: 604 723 1433

E: jjj@GSilver.com

Gsilver.com

 

VSA Capital - AQSE Corporate Adviser

T: +44 (0) 20 3005 5000

Simon Barton - Corporate Finance

Thomas Jackson - Corporate Finance

Andrew Monk - Corporate Broking

David Scriven - Corporate Broking

 

About Guanajuato Silver

GSilver is a precious metals producer engaged in reactivating past producing
silver and gold mines in central Mexico. The Company produces silver and gold
concentrates from the El Cubo Mine Complex, Valenciana Mines Complex, and the
San Ignacio mine; all three mines are located within the state of Guanajuato,
which has an established 480-year mining history. Additionally, the Company
produces silver, gold, lead, and zinc concentrates from the Topia mine in
northwestern Durango. With four operating mines and three processing
facilities, Guanajuato Silver is one of the fastest growing silver producers
in Mexico.

 

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