Guanajuato Silver Closes New US$5M Silver-Gold Pre-Payment Facility With OCIM
TSX-V: GSVR OTCQX: GSVRF
Guanajuato Silver Closes New US$5M Silver-Gold Pre-Payment Facility With OCIM
March 30, 2023 – Vancouver, British Columbia – Guanajuato Silver Company Ltd. (the “ Company” or “GSilver”)
(TSXV:GSVR)(AQUIS:GSVR)(OTCQX:GSVRF) is pleased to announce that the Company has drawn down US$5M
from its new silver and gold pre -payment facility (the “New Pre-Payment Facility”) with Swiss-based precious
metals trading firm, OCIM Metals & Mining S.A. (“OCIM”) (See Guanajuato Silver previous news release dated
March 16, 2023 – “Guanajuato Silver Arranges New US$5,000,000 Facility with OCIM”) . The net proceeds from
the New Pre-Payment Facility will be used to extinguish the previous OCIM prepayment facility in its totality, and
for capital expenditures related to ramp-up activities at all four of the Company’s producing silver mines.
James Anderson, Chairman and CEO stated: “Once again OCIM has shown a willingness to work with Guanajuato
Silver to extend the timeline of our silver and gold payment obligations under previous agreements with them.
This facility enables the Company to focus more capital, more swiftly, toward expanding production at all of our
producing mines and continuing the trend of considerable quarter over quarter production growth”.
About Guanajuato Silver
GSilver is a precious metals producer en gaged 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, 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 net proceeds from the New Pre-Payment Facility, the status of the Company
as one of the fastest growing silver producers in Mexico, and the ability of the Company to ramp-up and expand production
across all four of its producing silver mines and grow into a mid-tier silver producer.
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
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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
operations and increase production from its existing mining and milling operations and the availability of excess processing
and tailings capacity to accommodate same; the Company’s ability 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 to attain positive cash flow. GSilver’s decision 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 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.