REG - Guanajuato Silver Co - Close of First Tranche Equity Financing

Guanajuato SilverAnnouncement

23/12/2022 13:00

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RNS Number : 9479K  Guanajuato Silver Company Ltd.  23 December 2022

23 December 2022

 

Guanajuato Silver Company Ltd

(" Guanajuato Silver " or the "Company")

Close of First Tranche Equity Financing

 

Guanajuato Silver Company Ltd. (TSXV:GSVR) (OTCQX:GSVRF) (AQSE:GSVR), a
precious metals producer in Mexico, is pleased to announce that it has closed
the first tranche of its non-brokered Listed Issuer Financing Exemption
private placement of up to 17,647,059 units (the "Units") at a price of
C$0.425 per Unit for maximum gross proceeds of C$7.5 million (the "Offering")
(see GSilver news release dated December 12, 2022 - "Guanajuato Silver
Announces L.I.F.E. Equity Financing"). The Company has issued a total of
15,952,196 Units for gross proceeds of C$6,779,683 in the first tranche; each
Unit consisting of one common share of the Company (a "Share") and one-half
(1/2) of one transferable share purchase warrant, each whole warrant (a
"Warrant") exercisable to purchase an additional Share at C$0.60 for a period
of two years after closing.

The Shares and Warrants were issued by the Company pursuant to the Listed
Issuer Financing Exemption under Part 5A of National Instrument 45-106 -
Prospectus Exemptions and therefore are "free-trading" under applicable
Canadian securities laws.

Certain directors and officers of the Company participated in the first
tranche of the Offering for an aggregate of 66,000 Units and the Company
relied on the exemptions from the "formal valuation" and "minority shareholder
approval" requirements of Multilateral Instrument 61-101 - Protection of
Minority Security Holders in Special Transactions ("MI 61-101") contained in
subsections 5.5(a) and 5.7(1)(a) of MI 61-101 on the basis that neither the
fair market value of the Units subscribed for, nor the consideration for the
Units paid, by the insiders exceeded 25% of the Company's market
capitalization.

Finder's fees totalling C$222,962.13 cash and 514,591 finder's warrants were
paid to various registered dealers in connection with the closing of the first
tranche of the Offering. Each finder's warrant entitles the holder to acquire
one Share at a price of C$0.60 for a period of 24 months from closing.

The net proceeds of the Offering will be used to, among other things, ramp up
production at the Company's existing mines in and about Guanajuato, Mexico
including El Cubo, San Ignacio and Valenciana, expand and modernize the
processing facilities at the Topia mine in Durango, Mexico, increase
brownfields' exploration programs, and fund general and administrative
expenses as more particularly described in the Company's offering document
dated December 12, 2022 (the "Offering Document") prepared in connection with
the Offering. A copy of the Offering Document can be accessed under the
Company's profile at www.sedar.com and at the Company's website at
www.gsilver.com.

The closing of a second tranche of the Offering is expected to occur on or
about January 12, 2023. Potential investors who are interested in
participating in the second tranche of the Offering may reach out directly to
jjj@gsilver.com and should read the Offering Document before making an
investment decision.

This new release does not constitute an offer to sell or a solicitation of an
offer to buy any of the securities in the United States. The securities have
not been and will not be registered under the 1933 Act, or any state
securities laws and may not be offered or sold within the United States or to
or for the account or benefit of a U.S. person (as defined in Regulation S
under the 1933 Act) unless registered under the 1933 Act and applicable state
securities laws or an exemption from such registration is available.

 

For further information regarding Guanajuato Silver Company Ltd., please
contact:

JJ Jennex, Gerente de Comunicaciones , T: 604 723 1433

E: jjj@GSilver.com

GSilver.com

 

VSA Capital - AQSE Corporate Adviser

T: +44 (0) 20 3005 5000

Simon Barton - Corporate Finance

Tolgahan Kuce - Corporate Finance

Andrew Monk - Corporate Broking

David Scriven - Corporate Broking

 

About Guanajuato Silver

Guanajuato Silver 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.

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