Guanajuato Silver Provides Corporate Update ~Appointment of Chief Operating Officer~ ~~Elimination of US$2,000,000 in Contingent Payments~~
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Guanajuato Silver Provides Corporate Update
~Appointment of Chief Operating Officer~
~~Elimination of US$2,000,000 in Contingent Payments~~
November 29, 2023 – Vancouver, British Columbia – Guanajuato Silver Company Ltd. (the “ Company” or
“GSilver”) ( TSXV:GSVR)(OTCQX:GSVRF) is pleased to provide a corporate update highlighted by the
appointment of Carlos A. Silva as Chief Operating Officer (“COO”).
Appointment of COO
With a career spanning over 35 years, Mr. Silva has proven serially successful at advancing, expanding, and
managing mining operations within Mexico & Bolivia. Like many of GSilver’s employees, Mr. Silva is a graduate
of mine engineering from the University of Guanajuato; he holds an MBA from ITESM, and he is a graduate of
IPADE Business School. After an initial career of continually taking roles of greater responsibility overseeing
different types of deposits such as gypsum, manganese, gold, silver and polymetallic deposits, notably with the
La Fortuna mine in Sinaloa, and the San Dimas mine in Durango, he began working with Trafigura in 2007,
where he expanded the Zimapan mine project in the state of Hidalgo. Mr. Silva co-founded Carrizal Mining in
2009, where he led the re-start and expansion of the Zimapan mine. In 2017 he joined Santacruz Silver Mining
Ltd., first as COO, and then as CEO, vending his company Carrizal Mining into Santacruz Silver in the process.
Mr. Silva left Santacruz Silver in August of this year, having helped that company expand its production profile
from just 815,000 silver-equivalent ounces in 2018 to 19,600,000 ounces of silver-equivalent production in
2022. Mr. Silva replaces Mario Valdez Bustillos, who was promoted from VP Operations to Co-Chief Operating
Officer in April, 2023.
Commenting on this appointment, James Anderson, Chairman and CEO said, “We are building one of the best
mine operating teams in Mexico - and the addition of Carlos makes us one giant step better. Carlos is the ideal
candidate to secure and expand upon the significant progress we have made over the past 12-months; he
brings a wealth of experience not just in terms of underground mining operations, but also in terms of his
demonstrated entrepreneurial insight, which will serve Guanajuato Silver well as we enter our next phase of
growth.”
Agreement with Great Panther Trustee to Terminate Contingency Payments
The Company has signed an agreement (the “Agreement”) with the court appointed insolvency trustee of the
Great Panther Estate (the “ Trustee”) to terminate all obligations of the Company to make contingency
payments totalling US$2 million in exchange for the offset of a working capital adjustment receivable owed to
the Company by Great Panther. In August, 2022, GSilver closed the purchase of Great Panther Mining Ltd.'s
("Great Panther") Mexican subsidiary Minera Mexicana Rosario S.A. de C.V. ("MMR"), which owned the Topia
mine in the state of Durango, Mexico ("Topia"), the San Ignacio mine (“San Ignacio”) and the Valenciana Mine
Complex ("VMC") in Guanajuato, Mexico (the "MMR Acquisition"), (See Guanajuato Silver news release dated
August 4, 2022 – “GSilver Closes Acquisition of Great Panther’s Mexican Mining Assets”). At that time, the MMR
Acquisition included three contingency payments due from GSilver to Great Panther, specifically:
• US$500,000 upon GSilver producing 2,500,000 ounces of silver from the purchased MMR assets.
• US$750,000 if the price of silver closes at or above US$27.50 per ounce for 30 consecutive days within
two years after closing.
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• US$750,000 if the price of silver closes at or above US$30.00 per ounce for 30 consecutive days within
three years after closing.
On December 16, 2022, Great Panther made a voluntary assignment into bankruptcy under the Ba nkruptcy
and Insolvency Act of Canada, and the licensed insolvency T rustee was appointed by the Supreme Court of
British Columbia. The Agreement to terminate the obligation to make contingency payments is necessary to
allow the Trustee to complete the insolvency process and provides a substantial benefit to GSilver through the
elimination of these obligations.
Withdrawal from Aquis Exchange
Guanajuato Silver Company Ltd. also announces that it has submitted a request to the Aquis Stock Exchange
Growth Market (“Aquis”), for its common shares (“Common Shares”) be withdrawn from trading on Aquis,
with such withdrawal to take effect as of market close on December 29, 2023 (the “Withdrawal”).
The Company has its primary listing on the TSX Venture Exchange (“TSX-V”). The Aquis quotation was sought
as a secondary listing to further enhance the liquidity and fundraising ability of the Company. The Aquis
quotation gives UK shareholders the ability to hold Common Shares through a CREST Depositary Interest
(“CDI”), allowing for full fungibility between the two markets. However, the Company no longer believes it can
justify the cost of being quoted on both exchanges. The Company is headquartered in Canada and is of the
opinion that its TSX-V listing provides sufficient access for investors to trade its Common Shares.
After December 29, 2023, any holders of CDIs representing Common Shares in the Company will no longer be
able to trade those CDIs on Aquis in the United Kingdom, however the Company’s Common Shares will continue
to trade on the TSX-V in Canada and the OTCQX in the United States. Holders of CDIs should contact an
independent financial adviser if they have any doubt about what action to take either before or after
Withdrawal.
The Company notes that under the AQSE - Rules for Issuers, if an issuer has its shares traded on another market
of equivalent regulatory standing including a qualifying market, shareholder approval at a general meeting will
not be required to be sought. The Company’s Common Shares are traded on the TSX-V, a qualifying market,
and accordingly a circular is not being posted to shareholders as there is no need to obtain shareholder
approval.
S
tock Options and Restricted Shares Grant
The Company announces the granting of stock options and restricted share units (RSUs) to an officer under the
Company's stock option plan and omnibus equity compensation plan, respectively.
The Company has granted stock options under its stock option plan to purchase up to an aggregate o f 750,000
common shares of the Company. The stock options will be exercisable for a term of five years at a price per share
equal to today’s closing price of the Company’s common shares on the TSX Venture Exchange, subject to vesting
on the basis of one-third on the date of grant, one third after 12 months and one-third after 24 months.
In addition, the Company has granted an aggregate of up to 230,000 RSU’s vesting after 12 months. Each RSU
entitles the holder to receive, upon vesting, one common share of the Company.
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. In addition, 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, 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.
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 Company building one of the best mine operating teams in Mexico, the next
phase of growth for the Company, the benefits of the appointment of Mr. Silva, the benefits of the agreement with the
Trustee, continued trading of the Common Shares on the TSX-V and OTCQX and the Company’s status as one of the fastest
growing silver producers in Mexico.
Such fo rward -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 mineral resources and other mineralized material at El Cubo and
the Company’s other mining projects in Guanajuato, Mexico 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 the 2023 Preliminary Economic Assessment on El Cubo (“2023 PEA”); the ability
of the Company to ramp up processing of mineral resources and material at El Cubo and the Company’s other mining projects
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 co st estimates;
operating costs; 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 a re 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, high 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 mineral resources or other material at El Cubo, VMC, San Ignacio and Topia (including at Topia
buying and processing ore from contractors) for processing at its existing mills to increase production, tonnage milled and
recovery rates of gold, silver, and other metals i n the amounts, grades, recoveries, costs and timetable anticipated. In
addition, GSilver’s d ecision to process mineral resources and other material from El Cubo, VMC, San Ignacio and Topia is not
based on a feasibility study of mineral reserves demonstrating economic and technical viability and therefore is subject to
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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
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 or the 2023 PEA 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 high 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 r eliance 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 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.