Guanajuato Silver Extinguishes 1st Ocean Partners Debt Facility
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Guanajuato Silver Extinguishes 1st Ocean Partners Debt Facility
May 21, 2024 – Vancouver, British Columbia – Guanajuato Silver Company Ltd. (the “Company” or “GSilver”)
(TSXV:GSVR)(OTCQX:GSVRF), a significant producer of silver and gold in Mexico, is pleased to announce the
complete repayment of the US$5,000,000 concentrate pre-payment facility (the “OP Facility”) owed to Ocean
Partners UK Limited (“Ocean Partners”), a metal off-take and trading firm (see GSilver news release dated August
30, 2022 – “Guanajuato Silver Draws US$5,000,000 Credit Facility”).
James Anderson, Chairman and CEO, said, “The repayment in full of this credit facility reflects the rapidly
improving financial position of Guanajuato Silver. The elimination of this loan will have an immediate positive
impact on our monthly economic performance, in parallel with the continued ramp-up at our four producing silver
mines - with improved tonnage throughput, and at lower operating costs.”
Guanajuato Silver now has two loans outstanding . The first loan is a US$5,000,000 silver and gold pre -payment
facility (the “Facility”) with Swiss-based precious metals trading firm OCIM Metals & Minin g S.A. (“OCIM”) (see
GSilver news release dated March 16, 2023 – “Guanajuato Silver Arranges New US$5,000,000 Facility with OCIM”);
the remaining balance of approximately US$3.2M is scheduled to be repaid in full by September, 2024.
Mr. Anderson added, “The elimination of the OCIM pre-payment facility approximately five months from now will
further enhance economic performance and flexibility and improve our working capital position . None of
Guanajuato Silver’s currently producing mines are encumbered by royalties; ultimately our goal is to become a
debt-free producer of silver and gold.”
Guanajuato Silver’s second outstanding loan i s the recently announced gold loan credit facility (the “Expanded
Facility”) with Ocean Partners (see GSilver news release dated February 29,2024 – “ Guanajuato Silver Increases
Size of Gold Loan Credit Facility to US$ 13.3M”); the Expanded Facility has a term of 30 months with payments
commencing in June 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
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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 rapidly improving financial and working capital position
of Guanajuato Silver, the immediate positive impact on the Company’s monthly economic performance, the
ramp-up of the Company’s four producing silver mines, improved tonnage throughput and at lower operating
cost, the repayment of the OCIM pre-payment facility, the goal to be a debt free producer of silver and gold,
and GSilver’s status as one of the fasting growing silver mining company in Mexico.
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: the potential quantity, grade and
metal content of the mineralized material at El Cubo, San Ignacio, VMC and Topia, 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; 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 f oregoing 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, 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 resource 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
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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 other 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 Cubo, San Ignacio, VMC and Topia and the anticipated level of production therefrom will be
realized. In addition, there are no assurances that the C ompany 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 ongoing 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.com 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.