Guanajuato Silver Repays OCIM Loan In Full ~ Elimination of Debt Facility Demonstrates Improving Financial Position ~
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Guanajuato Silver Repays OCIM Loan In Full
~ Elimination of Debt Facility Demonstrates Improving Financial Position ~
September 19, 2024 – Vancouver, British Columbia – Guanajuato Silver Company Ltd. (the “Company” or
“GSilver”) (TSXV:GSVR)(OTCQX:GSVRF), a growing gold and silver producer with operations in Mexico, is pleased
to announce the complete repayment of its US$7,500,000 silver and gold pre-payment facility to Swiss-based
precious metals trading firm, OCIM Metals & Mining S.A. (“OCIM”) (See previous Guanajuato Silver news release
dated May 9, 2022 – “GSilver Draws US$7.5M Silver/Gold Pre-Payment Facility from OCIM”).
James Anderson, Chairman and CEO, said, “Our rapid transition to producer status was made possible by OCIM;
they provided the initial financing for our acquisition of the El Cubo mine and milling facility. In OCIM, we have
been very fortunate to have had a funding partner steadfast in their support of our goals and strategic initiatives
during the early days of the Company’s emergence into a significant producer of silver and gold in Mexico. The
full repayment of this loan frees up significant monthly cashflows, thereby providing Guanajuato Silver with
enhanced financial flexibility and a strengthened working capital position as we continue to advance production
at our four producing silver mines in Mexico.”
Laurent Mathiot, Chairman and CEO of OCIM, added, “Supporting junior mining companies to reach a new status
and increase production is exactly where OCIM can add significant value through our bespoke funding solutions.
James Anderson, and his Guanajuato Silver team, have always exhibited the highest level of professionalism, best
practices, and business acumen. It has been a pleasure to be associated with Guanajuato Silver and we wish the
Company continued future success.”
Guanajuato Silver now has a single loan outstanding - the gold loan credit facility (the “Expanded Facility”) with
Ocean Partners UK Ltd. (see GSilver news release dated February 29, 2024). The Expanded Facility is repayable
in equal fixed monthly installments of gold totalling approximately 338 troy ounces per month for a period of 30
months which commenced in June 2024. Notably, Guanajuato Silver averaged monthly production of over 1600
ounces of gold and over 137,000 ounces of silver during the first half of 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, the repayment of the Ocean Partners UK Ltd. gold loan credit
facility, and GSilver’s status as one of the fasting growing silver mining company in Mexico.
Such forward-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 and San Ignacio, 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 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, 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 and San Ignacio 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
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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
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
impact of any resurgence of COVID-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.