Guanajuato Silver Closes Final Tranche of C$8.5M Equity Financing
TSX-V: GSVR OTCQX: GSVRF
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Guanajuato Silver Closes Final Tranche of C$8.5M Equity Financing
January 11, 2023 – Vancouver, British Columbia – Guanajuato Silver Company Ltd. (the “Company” or “GSilver”)
(TSXV:GSVR)(AQUIS:GSVR)(OTCQX:GSVRF) is pleased to announce that it has closed the second and final tranche
of its non-brokered private placement offering (the “Offering”) totalling C$8.5 million announced on December
12, 2022 and expanded on January 5, 2023. The Company issued 4,080,486 units (the “Units”) for gross proceeds
of C$ 1,734,206.55 in the second tranche for a total Offering of 20,032,682 Units for gross proceeds of
C$8,513,889.85. Each Unit consisted of one common share of the Company (a “Share”) and one-half (1/2) of one
transferable share purchase warrant; each whole warrant (a “Warrant”) exercisable to purchase an additional
Share at C$0.60 for a peri od of two years after closing. The Shares and Warrants were issued by the Company
pursuant to the Listed Issuer Financing Exemption under Part 5A of National Instrument 45 -106 – Prospectus
Exemptions and therefore are “free-trading” under applicable Canadian securities laws.
Chairman and CEO, James Anderson, said, “ The strengthening of our balance sheet at this time gives us the
flexibility to deploy targeted capex at specific areas of our business that we believe will prove accretive to
shareholders as we aim to expand production across all four of our producing silver mines in Mexico.”
The net proceeds of the Offeri ng will be used to, among other things, ramp up production at the Company’s
existing mines in and about Guanajuato, Mexico including El Cubo, San Ignacio and Valenciana, expand and
modernize the processing facilities at the Topia mine in Durango, Mexico , increase brownfields’ exploration
programs, and fund general and administrative expenses as more particularly described in the Company’s
amended and restated offering document dated December 31, 2022 (the "Amended Offering Document ")
prepared in connection with the expanded Offering. The Amended Offering Document related to this Offering
can be accessed under the Company's profile at www.sedar.com and at the Company's website at
www.gsilver.com.
The Company has paid total finder’s fees in connection with the first and second tranches of the O ffering of
$238,262.13 cash and finder warrants to purchase up to 550,591 common shares of the Company on the same
terms as the Warrants in accordance with the policies of the TSX Venture Exchange.
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.
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ON BEHALF OF THE BOARD OF DIRECTORS
"James Anderson"
Chairman and CEO
For further information regarding Guanajuato Silver Company Ltd., please contact:
JJ Jennex, Communications Manager, +1 (604) 723-1433
Email: [email protected]
Continue to watch our progress at: www.GSilver.com
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 news
release.
Forward-Looking Statements and Information
This news release contains forward-looking statements and information, which relate to future events or future performance
including, but not limited to, the intended use of proceeds from the Offering, the ability of the Company to expand production
across all four of its producing silver mines, and the status of the Company as one of the fastest growing silver producers in
Mexico.
Such forward-looking statements and information reflect management's current beliefs and expectations 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, market, economic and regulatory uncertainties
and contingencies. These assumptions include: our mineral resource estimates at El Cubo and El Pinguico and estimates of
mineralized material at San Ignacio, Valenciana and Topia and the assumptions upon which they are based, including
geotechnical and metallurgical characteristics of rock 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; the ability of the Company to successfully integrate
production from San Ignacio and Valenciana 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 accommodate same; the Company’s a bility to secure
additional sources of mineralized material for processing, prices for silver, gold and other metals remaining as estimated;
currency exchange rates remaining as estimated; availability of funds for the Company's projects and to satisfy current
liabilities and obligations including debt repayments, capital expenditures, 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 cautioned that such forward-looking statements and information are neither promises nor guarantees, and are
subject to significant risks and uncertainties that may cause actual future results, level of activity, production levels,
performance or achievements of GSilver to differ materially from those expected including, but not limited to, market
conditions, availability of financing, future prices of gold, silver and other metals, currency rate fluctuations, actual results of
exploration, development and production activities, actual resource grades and recoveries of silver, gold and other metals,
availability of third party mineralized material for processing, rising inflation and interest rates, geopolitical conflicts including
wars, unanticipated geological or structural formations and characteristics, environmental risks, 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 its existing mines to process
mineralized materials to produce silver, gold and other concentrates in the amounts, grades, recoveries, costs and timetable
anticipated. GSilver’s d ecision to process mineralized material from its mining projects 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 production of silver, gold and other metals will
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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 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 the Company's operations, supply chains, ability to access mining projects or
procure equipment, supplies, 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.sedar.com including the Company’s annual information form for the
year ended December 31, 2021. 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.