Guanajuato Silver Draws US$5,000,000 Credit Facility
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Guanajuato Silver Draws US$5,000,000 Credit Facility
August 30, 2022 – Vancouver, British Columbia – Guanajuato Silver Company Ltd. (the “Company”
or “GSilver”) (TSXV:GSVR)(OTCQX:GSVRF) is pleased to report that in conjunction with its recent
acquisition of Minera Mexicana El Rosario S.A. de C.V. (“MMR”) from Great Panther Mining Limited,
the Company has closed a US$5M concentrate pre-payment facility (the “OP Facility”) with Ocean
Partners UK Limited, a metals off-take and trading firm. MMR owns 100% of the Topia Mine in
Durango, Mexico and the San Ignacio Mine and Valenciana Mines Complex in Guanajuato, Mexico.
The OP Facility is for a term of 24-months, repayable over a period of 21-months following a three-
month grace period, and secured by a guarantee of MMR, a pledge over the Company’s shares of
MMR and, if required by Ocean Partners, a first ranking security interest over the property and
assets of MMR. Interest on the loan will be calculated at 12-month LIBOR + 7.5%. (See Guanajuato
Silver news releases dated June 29, 2022 - GSilver to Acquire 100% of Great Panther’s Mexican
Mining Assets - Arranges US$14.0M Debt and Equity Financing and August 4, 2022 – GSilver Closes
Acquisition of Great Panther’s Mexican Mining Assets). W ith the receipt of the OP Facility,
Guanajuato Silver has a cash position as of August 29, 2022, of approximately US$9.2M.
Concurrent with the OP Facility, the Company has agreed to sell 100% of its silver and gold
concentrate produced from the Valenciana Mines Complex and San Ignacio Mine to Ocean Partners
for a period of 24 months subject to a minimum delivery of 6,000 wet metric tonnes of concentrate.
Additionally, the Company will sell to Ocean Partners 100% of all zinc concentrate produced from
the Topia Mine over the same period, subject to a minimum of 7,800 wet metric tonnes. As further
consideration for the OP Facility, t he Company has issued a total of 2,500,000 share purchase
warrants to Ocean Partners; each warrant entitling Ocean Partners to purchase one common share
of GSilver at a price of C$0.50 for period 24 months. The Ocean Partners’ warrants and any common
shares issuable upon the exercise thereof 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 past producing silver and gold mines
near the city of Guanajuato, Mexico, which has an established 480-year mining history. 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
"James Anderson"
Chairman and CEO
For further information regarding Guanajuato Silver Company Ltd., please contact:
JJ Jennex, Communications Manager, T: 604 723 1433
Gsilver.com
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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 ability of the Company to repay the OP Facility and
accrued interest thereon from projected sales of concentrate derived from the Company’s existing El Cubo
and El Pinguico mines and newly acquired San Ignacio, Valenciana and Topia mines in accordance with the
requirements and timetable set out in the OP Facility, the ability of the Company to successfully integrate the
production of mineralized material from the San Ignacio mine and the Valenciana Mine Complex into existing
production from El Cubo and El Pinguico and increase production at the Topia Mine to satisfy the minimum
concentrate delivery requirements to Ocean Partners, the ability of the Company to expand production,
tonnage and recoveries of mineralized material, improve grades and metallurgical recovery rates of silver,
gold and other metals, increase revenues, and reduce production costs (including AISC) consistent with the
Company’s expectations and production models, the Company’s ability to restart production from the San
Ignacio and Valenciana mines and improve efficiency and output at the Topia mine as currently planned and
the timing thereof, t he Company’s f uture development and production activities; estimates of mineral
resources and mineralized material at the Company’s mining projects and the accessibility, attractiveness,
mineral content and metallurgical characteristics thereof; the opportunities for future exploration,
development and production at the Company’s mines and the proposed exploration, development and
production programs therefor and the timing and costs thereof; and the success related to any future
exploration, development and/or production programs.
Such f orward -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: 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 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, 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 ar e 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, currency rate fluctuations, 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 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
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able to continue to increase production, tonnage milled and recoveries rates, improve grades and reduce
costs at El Cubo and/or Topia to process mineralized materials to produce silver, gold and other concentrates
in the amounts, grades, recoveries, costs and timetable anticipated. In addition, GSilver’s d ecision 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 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 (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 an d 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.sedar.com including the Company’s interim financial statements 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 does not assume any obligation to update or revise them to reflect new
events or circumstances save as required by law.