REG - Guanajuato Silver Co - Early Loan Repayment

Guanajuato SilverAnnouncement

22/11/2022 13:00

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RNS Number : 2334H  Guanajuato Silver Company Ltd.  22 November 2022

22 November 2022

Guanajuato Silver Company Ltd

("Guanajuato Silver" or the "Company")

 

Early Loan Repayment

 

Guanajuato Silver Company Ltd. (TSXV:GSVR) (OTCQX:GSVRF) (AQSE:GSVR), a
precious metals producer in Mexico, is pleased to announce the partial
prepayment of the two silver and gold loan/pre-payment facilities with
Swiss-based precious metals trading firm, OCIM Precious Metals S.A. ("OCIM"),
(see Guanajuato Silver previous news release dated May 9, 2022 - "GSilver
Draws US$7.5M Silver/Gold Pre-Payment Facility from OCIM").
(https://www.gsilver.com/news/2022c/785-ilverraws75milveroldreaymentacilityfrom20220509)

 

Guanajuato Silver has delivered an aggregate of 96,518 ounces of silver and
846 ounces of gold representing five months' deliveries of silver and gold
ounces to OCIM thereby reducing the total number of monthly delivery payments
remaining to OCIM under both facilities to ten. Because this repayment was
transacted early, the Company received a discount on the total number of
silver ounces paid to OCIM. Furthermore, the gold and silver bullion used to
complete this early repayment was purchased by the Company at significantly
lower spot prices during the past seven months than the spot prices used to
calculate the initial gold and silver repayment ounces due to OCIM, thereby
enabling the Company to accrue additional cost savings.

 

James Anderson, Chairman and CEO of Guanajuato Silver said, "Because we pay
back OCIM in fixed amounts of silver and gold based on spot prices set at the
time of funding, we have regularly taken advantage of dips in the spot market
to purchase bullion; having accumulated enough silver and gold to cover five
delivery payments, we are making this early repayment to OCIM, and in return,
OCIM is compensating us further by providing a discount on the total number of
precious metal ounces owed. We look forward to continuing our excellent
working relationship with OCIM as we continue to ramp-up production at all
four of our producing silver mines in Mexico."

 

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

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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