REG - Guanajuato Silver Co - Corporate Update

Guanajuato SilverAnnouncement

29/11/2023 12:45

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RNS Number : 0744V  Guanajuato Silver Company Ltd.  29 November 2023

 

Guanajuato Silver Company Limited

 

Guanajuato Silver Provides Corporate Update

 

~Appointment of Chief Operating Officer~

~~Elimination of US$2,000,000 in Contingent Payments~~

 

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
(https://gsilver.com/news/2022c/794-ilverlosescquisitionofreatanthersexicanin20220804)
"). 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.

·      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 Bankruptcy and Insolvency Act of Canada, and the licensed
insolvency Trustee 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.

Stock 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 of 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.

 

 

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

Thomas Jackson - Corporate Finance

Andrew Monk - Corporate Broking

David Scriven - Corporate Broking

 

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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