Guanajuato Silver Achieves Production Milestone at El Cubo ~ Ocean Partners UK Limited Increases Share Position ~
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Guanajuato Silver Achieves Production Milestone at El Cubo
~ Ocean Partners UK Limited Increases Share Position ~
September 26, 2024 – Vancouver, British Columbia – Guanajuato Silver Company Ltd. (the “ Company” or
“GSilver”) ( TSXV:GSVR)(OTCQX:GSVRF), a growing Mexican-based precious metals producer, announces that
over 3,000,000 ounces of silver-Equivalent (“AgEq”) (1) have now been produced at the El Cubo mill; this significant
milestone has triggered the last remaining contingent payment owed to Endeavour Silver Corp. (“Endeavour”) as
part of the purchase of the El Cubo mine and mill complex (“El Cubo”) located in Guanajuato, Mexico.
In 2021, Guanajuato Silver purchased El Cubo from Endeavour for US$15,000,000; the transaction included a
contingent payment that would see Endeavour paid an additional US$1,000,000 once 3,000,000 AgEq ounces had
been produced at El Cubo (the “ Contingent Payment”)(See GS ilver news release dated December 21, 2020 –
“GSilver to Acquire El Cubo Mine & Mill from Endeavour Silver Corp). As part of the agreement, Guanajuato Silver
has the right to settle one half of the Contingent Payment through the issuance to Endeavour of 2,753,265
common shares in the capital of the Company at a deemed price of C$0.245 per share, this being the 10-day VWAP
price of the shares 30 days after the milestone was reached. As part of a shares for debt agreement, Endeavour
has agreed to settle the balance of the contingent payment through the issuance of approximately 2,720,000
common shares in the capital of the Company at a deemed price of C$0.25 per share (the “ Endeavour Debt
Settlement”).
Additionally, Ocean Partners UK Limited (“ Ocean Partners”), a metals off- take and trading firm , has agreed to
accept shares for debt for two months’ of outstanding payments on the existing Gold Loan Credit Facility (the
“Expanded Facility”), which the Company began paying down in June 2024 (See GSilver news releases dated
December 5, 2023 and February 29, 2024). Ocean Partners will receive approximately 9,771,635 shares for total
consideration of approximately US$1.8M under the same terms as the Endeavour Debt Settlement (the “OP Debt
Settlement”). The Expanded Facility is Guanajuato Silver’s only remaining outstanding loan and is repayable in
equal fixed monthly installments of gold totalling approximately 338 troy ounces per month for a period of 30
months which commenced in June 2024.
James Anderson, Chairman & CEO, said, “Guanajuato Silver has been able to rapidly advance production at our
four producing silver mines in large part because of the willingness of our financial partners to provide flexibility
and solutions that do not inhibit growth. Ocean Partners has been our preferred metals trader from inception;
and we are pleased that they are now one of our larger shareholders with approximately 4.9% of all shares
outstanding. We look forward to continuing our relationship with Ocean Partners; we see this as a genuine
partnership that is central to our continued success.”
Guanajuato Silver has also arranged to settle approximately US$250,000 in outstanding liabilities of the Company
by the issuance of approximately 1,360,000 common shares in the capital of the Company to an arm’s length third
party under the same terms as the Endeavour Debt Settlement (the “Third Party Debt Settlement”).
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The Endeavour Debt Settlement, OP Debt Settlement and Third Party Debt Settlement are subject to acceptance
of the TSX Venture Exchange and all shares issued thereunder will be subject to a statutory hold period of four
months and a day from the date of issuance in accordance with applicable securities legislation.
(1) AgEq has been calculated using an 82.77:1 (Ag/Au) ratio from October 1, 2021, until September 20, 2024.
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, 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.
ON BEHALF OF THE BOARD OF DIRECTORS
"James Anderson"
Chairman and CEO
For further information regarding Guanajuato Silver Company Ltd., please contact:
JJ Jennex, Gerente de Comunicaciones, T: 604 723 1433
GSilver.com
Guanajuato Silver Bullion Store
Please visit our Bullion Store, where Guanajuato Silver coins and bars can be purchased.
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.
Forward-Looking Statements
This news release contains certain forward-looking statements and information, which relate to future events or
future performance including, but not limited to, the terms and completion of the debt settlements described
in this news release, the repayment of the Expanded Facility and GSilver’s status as one of the fasting growing
silver mining company in Mexico.
Such forward-looking statements and information reflect management's current beliefs and are based on
information currently available to and assumptions made by the Company; which assumptions, while considered
reasonable by the Company, are inherently subject to significant operational, business, economic and regulatory
uncertainties and contingencies. These assumptions include: the receipt of TSX Venture Exchange approval for
the debt settlements, the potential quantity, grade and metal content of the mineralized material at El Cubo and
San Ignacio, the geotechnical and metallurgical characteristics of such material conforming to sampled results
and metallurgical performance; available tonnage of mineralized material to be mined and processed; resource
grades and recoveries; assumptions and discount rates being appropriately applied to production estimates;
prices for silver, gold and other metals remaining as estimated; currency exchange rates remaining as estimated;
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availability of funds for the Company's projects and to satisfy current liabilities and obligations including debt
repayments; capital, decommissioning and reclamation estimates; prices for energy inputs, labour, materials,
supplies and services (including transportation) and inflation rates remaining as estimated; no labour-related
disruptions; no unplanned delays or interruptions in scheduled 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 c autioned that such forward-looking statements and information are neither promises nor
guarantees, and are subject to risks and uncertainties that may cause future results, level of activity, production
levels, performance or achievements of GSilver to differ materially from those expected including, but not limited
to, failure to receive TSX Venture Exchange approval for the debt settlements, market conditions, availability of
financing, currency rate fluctuations, high inflation and interest rates, geopolitical conflicts including wars, actual
results of exploration, development and production activities, actual grades and recoveries of silver, gold and
other metals from the Company’s existing mines including El Cubo, San Ignacio, VMC and Topia, availability of
third party mineralized material for processing, unanticipated geological or structural formations and
characteristics, environmental risks, future prices of gold, silver and other metals, operating risks, accidents, labor
issues, equipment or personnel delays, delays in obtaining governmental or regulatory approvals and permits,
inadequate insurance, and other risks in the mining industry. There are no assurances that GSilver will be able to
continue to increase production, tonnage milled and recoveries rates, improve grades and reduce costs at El
Cubo, San Ignacio, VMC and/or Topia to process mineralized materials to produce silver, gold and o ther
concentrates in the amounts, grades, recoveries, costs and timetable anticipated. In addition, GSilver’s decision
to process mineralized material from El Cubo, San Ignacio, VMC and Topia is not based on a feasibility study of
mineral reserves demonstrating economic and technical viability and therefore is subject to increased
uncertainty and risk of failure, both economically and technically. Mineral resources and mineralized material
that are not Mineral Reserves do not have demonstrated economic viability, are considered too speculative
geologically to have the economic considerations applied to them, and may be materially affected by
environmental, permitting, legal, title, socio-political, marketing, and other relevant issues. There are no
assurances that the Company's projected grades of gold and silver at El Cuboand San Ignacio and the anticipated
level of production therefrom will be realized. In addition, there are no assurances that the Company will meet
its production forecasts or generate the anticipated cash flows from operations to satisfy its scheduled debt
payments or other liabilities when due or meet financial covenants to which the Company is subject or to fund
its exploration programs and corporate initiatives as planned. There is also uncertainty about impact of any
resurgence ofCOVID-19, the o ngoing war in Ukraine and conflict in Gaza, elevated inflation and interest rates and
the impact they will have on the Company's operations, supply chains, ability to access mining projects or procure
equipment, contractors and other personnel on a timely basis or at all and economic activity in general.
Accordingly, readers should not place undue reliance on forward-looking statements or information. All forward-
looking statements and information made in this news release are qualified by these cautionary statements and
those in our continuous disclosure filings available on SEDAR+ at www.sedarplus.ca including the Company’s
most recently filed annual information form . These forward-looking statements and information are made as of
the date hereof and the Company does not assume any obligation to update or revise them to reflect new events
or circumstances save as required by law.