Guanajuato Silver Draw US$5.0 – GuruFocus.com
VANCOUVER, BC /ACCESSWIRE/August 30, 2022/ Guanajuato Silver Company Ltd. (the “Company” Where “GSilver“) (TSXV:GSVR)(OTCQX:GSVRF) is pleased to announce that, along with its recent acquisition of Minera Mexicana El Rosario SA de CV (“MMR“) of Great Panther Mining Limited, the Company closed a US$5 million concentrate prepayment facility (the “PO facility“) with Ocean Partners UK Limited, a metal removal and trading company. MMR owns 100% of the Topia mine in Durango, Mexico, and the San Ignacio mine and Valenciana mining complex in Guanajuato, Mexico.
The OP facility has a term of 24 months, repayable over a period of 21 months after a grace period of three months, and secured by a guarantee from MMR, a pledge over the shares of MMR held by the Company and, if required by Ocean Partners, a first ranking security interest in the property and assets of MMR. Interest on the loan will be calculated at 12 month LIBOR + 7.5%. (See Guanajuato Silver press releases dated June 29, 2022 – GSilver to Acquire 100% of Great Panther’s Mexican Mining Assets – Arranges $14.0M Debt and Equity Financing and August 4, 2022 – GSilver Completes Acquisition of Mexican Mining Assets from Great Panther). With receipt of the OP Facility, Guanajuato Silver has a cash position as of August 29, 2022 of approximately US$9.2 million.
Concurrent with the OP facility, the Company has agreed to sell 100% of its silver and gold concentrate produced from the Valenciana mining complex and the San Ignacio mine to Ocean Partners for a period of 24 months subject to a minimum delivery of 6,000 wet metric tons of concentrate. In addition, the Company will sell to Ocean Partners 100% of all zinc concentrate produced from the Topia mine during the same period, subject to a minimum of 7,800 wet metric tonnes. In return for the OP Facility, the Company issued a total of 2,500,000 equity warrants to Ocean Partners; each warrant entitling Ocean Partners to purchase one common share of GSilver at a price of C$0.50 for a period of 24 months. The Ocean Partners warrants and all common shares issuable upon their exercise are subject to a 4 month hold period expiring on December 30, 2022.
About Guanajuato Silver
GSilver is a precious metals producer engaged in reactivating old silver and gold mines near the city of Guanajuato, Mexico, which has an established mining history of 480 years. With five mines and three processing facilities, the Company is one of the fastest growing silver producers in Mexico.
ON BEHALF OF THE BOARD OF DIRECTORS
President and CEO
For more information about Guanajuato Silver Company Ltd., please contact:
JJ Jennex, Communications Manager, Tel. : 604 723 1433
E : [email protected]
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
This press release contains certain forward-looking statements and information, which relate to future events or future performance, including, but not limited to, the Company’s ability to repay the OP Facility and accrued interest thereon. based on projected sales of concentrate derived from the existing El Cubo and El Pinguico mines and the newly acquired San Ignacio, Valenciana and Topia mines in accordance with the requirements and schedule established in the OP Facility, the Company’s ability to successfully integrate the production of mineralized material from the San Ignacio mine and the Valenciana mining complex into the existing production of El Cubo and El Pinguico and to increase production at the Topia mine to meet the minimum delivery requirements of focused on Ocean Partners, the company’s ability to increase production, tonnage and recovery of mineralized material, improve grades and recoveries metallurgical generation of silver, gold and other metals, increase revenues, and reduce production costs (including AISC) in accordance with Company expectations and production models, the capacity of the Company to restart production at the San Ignacio and Valenciana mines and to improve the efficiency and production of the Topia mine as currently planned and scheduled, the Company’s ability to support future development and production activities; estimates of the mineral resources and mineralized materials of the Company’s mining projects and their accessibility, attractiveness, mineral content and metallurgical characteristics; future exploration, development and production opportunities at the Company’s mines and proposed exploration, development and production programs therefor, and the timing and costs thereof; and the success of any future exploration, development and/or production program.
These forward-looking statements and information reflect the current beliefs of management and are based on currently available information and assumptions made by the Company; which assumptions, although considered reasonable by the Company, are inherently subject to significant operational, commercial, economic and regulatory uncertainties and contingencies. These assumptions include: our mineral resource estimates at El Cubo and El Pinguico and mineralized material estimates at San Ignacio, Valenciana and Topia and the assumptions on which they are based, including the geotechnical and metallurgical characteristics of the rock consistent with the results samples and metallurgical performance; the available tonnage of mineralized material to be mined and processed; resource grades and recoveries; assumptions and discount rates are appropriately applied to production estimates; the Company’s ability to successfully integrate San Ignacio and Valenciana production into the Company’s existing mining and milling operations at El Cubo and the availability of excess processing and tailings capacity at El Cubo to answer to ; the Company’s ability to obtain additional sources of mineralized material for processing; prices of silver, gold and other metals remaining as estimated; exchange rates remaining as estimated; the availability of funds for the Company’s projects and to satisfy current debts and obligations, including debt repayments; capital, decommissioning and reclamation estimates; prices of energy inputs, labor, materials, supplies and services (including transportation) and inflation rates remaining as estimated; no work interruption; no unforeseen delays or interruptions in planned construction and production; all necessary permits, licenses and regulatory approvals are received in a timely manner; and the ability to comply with environmental, health and safety laws. The foregoing list of assumptions is not exhaustive.
Readers are cautioned that such forward-looking statements and information are neither promises nor guarantees, and are subject to risks and uncertainties that could cause future results, level of activity, production levels, performance or GSilver’s achievements differ materially from those expected, including, but not limited to, market conditions, availability of financing, fluctuations in exchange rates, rising inflation and interest rates , geopolitical conflicts, including wars, actual results of exploration, development and production activities, actual resource grades and recoveries of silver, gold and other metals, availability of mineralized materials third parties for processing, unforeseen geological or structural formations and features, environmental risks, future prices of gold, silver and other metals, operating risks ation, accidents, labor problems, equipment or personnel delays, delays in obtaining governmental or regulatory approvals and permits, inadequate insurance and other risks in the mining industry. There can be no assurance that GSilver will be able to continue to increase production, tonnage milled and recovery rates, improve grades and reduce costs at El Cubo and/or Topia to process mineralized material to produce gold. silver, gold and other concentrates in anticipated quantities, grades, recoveries, costs and schedule. Additionally, GSilver’s decision to process mineralized material from El Cubo, El Pinguico and its newly acquired San Ignacio, Valenciana and Topia mines is not based on a feasibility study of mineral reserves demonstrating the viability economic and technical and is therefore subject to increased uncertainty and risk of failure, both economically and technically. Mineral Resources and Mineralized Materials that are not Mineral Reserves have not demonstrated economic viability, are considered too geologically speculative for economic considerations to be applied to them, and may be materially affected by environmental issues , permits, legal, title, socio-political, marketing. , and other relevant issues. There can be no assurance that the Company’s projected production of silver, gold and other metals will occur. In addition, there can be no assurance that the Company will meet its production forecasts or generate the expected operating cash flows to meet its scheduled debt payments or other liabilities as they come due or meet the financial covenants to which the Company is subject ( including the OP Facility) or to fund its exploration programs and corporate initiatives as planned. There is also uncertainty about the continued spread and severity of COVID-19, the ongoing war in Ukraine and rising inflation and interest rates and the impact they will have on Company operations, supply chains, the ability to access mining projects or procure equipment, contractors and other personnel on a timely or non-timely basis and general economic activity. Accordingly, readers should not place undue reliance on any forward-looking statements or information. All forward-looking statements and information contained in this press release are qualified by these cautionary statements and those contained in our continuous disclosure documents available on SEDAR at www.sedar.com, including the Company’s interim financial statements. company and accompanying MD&A for the three-month period ended June. 30, 2022. These forward-looking statements and information are made as of the date hereof, and the Company undertakes no obligation to update or revise them to reflect new events or circumstances, except as required by law.
THE SOURCE: Guanajuato Silver Company Ltd.
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