Guanajuato Silver Closes US$7.5 Million Credit Facility
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Guanajuato Silver Closes US$7.5 Million Credit Facility
December 5, 2023 – Vancouver, British Columbia – 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). 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.
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.
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
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.
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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 use of proceeds from the Facility, GSilver’s growth into a mid-tier producer
of precious metals in Mexico, and the Company’s status 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, economic and regulatory
uncertainties and contingencies. These assumptions include: our estimates of mineralized material at El Cubo, VMC, San
Ignacio 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 ramp up processing of mineralized material at Cata at the
projected rates and source sufficient high grade mineralized material to fill such processing capacity; 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 cost estimates;
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 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, market conditions,
availability of financing, future prices of gold, silver and other metals, currency rate fluctuations, rising inflation and
interest rates, actual results of production, exploration and development activities, actual resource grades and recoveries
of silver, gold and other metals, availability of third party mineralized material for processing, unanticipated geological or
structural formations and characteristics, geopolitical conflicts including wars, 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
successfully discover and mine sufficient quantities of high grade mineralized material at El Cubo, VMC, San Ignacio and
Topia for processing at its existing mills to increase production, tonnage milled and recoveries rates of gold, silver, and
other metals in the amounts, grades, recoveries, costs and timetable anticipated. In addition, GSilver’s decision to process
mineralized material from El Cubo, VMC, San Ignacio, Topia and its other mines 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, 2022. 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.