REG - Guanajuato Silver Co - Equity Financing Expanded To C$8.5M

Guanajuato SilverAnnouncement

06/01/2023 09:15

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RNS Number : 9448L  Guanajuato Silver Company Ltd.  06 January 2023

6 January 2023

Guanajuato Silver Company Ltd

("Guanajuato Silver" or the "Company")

 

Equity Financing Expanded To C$8.5M

 

Guanajuato Silver Company Ltd. (TSXV:GSVR) (OTCQX:GSVRF) (AQSE:GSVR), a
precious metals producer in Mexico, is pleased to announce that in response to
additional demand, the Company is expanding its non-brokered private placement
announced on December 12, 2022 (See GSilver news release - "Guanajuato Silver
Announces L.I.F.E. Equity Financing
(https://gsilver.com/news/2022c/831-uanajuatoilvernnouncesquityinancing20221212)
"). Subject to acceptance of the TSX Venture Exchange, the private placement
will now consist of a total of 20,032,682 units (the "Units") at a price of
C$0.425 per Unit for maximum gross proceeds of C$8,513,889.85 million (the
"Offering"). Each Unit consists 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.

 

On December 21, 2022, the Company closed an initial tranche of 15,952,196
Units for gross proceeds of C$6,779,683 (see Guanajuato Silver news release -
"Guanajuato Silver Closes C$6.8 Million First Tranche Equity Financing
(https://gsilver.com/news/2022c/833-uanajuatoilverloses68illionirstranchequity20221222)
"). It is anticipated that a second and final tranche for the balance of the
Offering will be completed on January 10, 2023. The Units are being offered
for sale by the Company pursuant to the Listed Issuer Financing Exemption
under Part 5A of National Instrument 45-106 - Prospectus Exemptions in all
provinces of Canada, except Quebec, and other qualifying jurisdictions such
that the underlying Shares and Warrants will be "free-trading" under
applicable Canadian securities laws. The Units will also be eligible for sale
in the United States to "accredited investors" under the United States
Securities Act of 1933, as amended (the "1933 Act") by way of private
placement pursuant to available exemptions from the registration requirements
of the 1933 Act, and resales of the Shares and Warrants will be permitted
outside the United States pursuant to Regulation S under the 1933 Act.

 

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 amended and restated
offering document dated December 31, 2022 (the "Amended Offering Document")
prepared in connection with the expanded Offering.  The Amended Offering
Document related to this Offering can be accessed under the Company's profile
at www.sedar.com (http://www.sedar.com) and at the Company's website at
www.gsilver.com (http://www.gsilver.com) .

 

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

 

JJ Jennex, Gerente de Comunicaciones, T: +1 (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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