REG - Guanajuato Silver Co - Equity Financing

Guanajuato SilverAnnouncement

12/12/2022 13:30

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RNS Number : 4138J  Guanajuato Silver Company Ltd.  12 December 2022

12 December 2022

 

Guanajuato Silver Company Ltd

("Guanajuato Silver" or the "Company")

 

 

Equity Financing

 

Guanajuato Silver Company Ltd. (TSXV:GSVR) (OTCQX:GSVRF) (AQSE:GSVR), a
precious metals producer in Mexico, is pleased to announce a non-brokered
Listed Issuer Financing Exemption (L.I.F.E) private placement (the "Offering")
of up to 17,647,059 units (the "Units") at C$0.425 for gross proceeds of
C$7,500,000, subject to a minimum offering of 7,058,824 Units for gross
proceeds of C$3,000,000. Each Unit will consist of one common share of the
Company and one-half (1/2) of one transferable share purchase warrant, each
whole warrant (a "Warrant") exercisable to purchase an additional common share
at C$0.60 for a period of two years after closing.

Chairman and CEO James Anderson said, "Over the last two years the Company has
purchased premium Mexican silver assets at rock-bottom prices. As we continue
to ramp up production at our four producing silver mines, and as the silver
price continues to gradually increase, we are acting now to strengthen our
balance sheet in order to deploy targeted capex where it can have the most
impactful returns on investment."

Proceeds from the Offering will be used to, inter alia:

·    Ramp up production at the Company's existing mines in and around
Guanajuato, Mexico including El Cubo, San Ignacio and Valenciana;

·    Expand and modernize the processing facilities at the Topia mine in
Durango, Mexico; with a view to increasing monthly milling capacity from 7,500
tonnes to approximately 10,000 tonnes per month;

·    Increase brownfields exploration programs across all projects, with
particular emphasis at the Valenciana and San Ignacio mines; and

·    Fund general working capital expenses and strengthen Guanajuato
Silver's balance sheet.

 

The Units will be offered for sale 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 and are expected to be immediately "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 Units will
be permitted outside the United States pursuant to Regulation S under the 1933
Act.

There is an offering document (the "Offering Document") related to this
Offering that 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) . Prospective investors should read this Offering
Document before making an investment decision.

Closing of the Offering, which may take place in one or more tranches, is
intended to occur on or around December 20, 2022.

A finder's fee of 6% cash and 6% finder's warrants, each finder's warrant to
be exercisable on the same terms as the Warrants forming part of the Units,
will be payable to finders who introduce purchasers of Units to the Company,
subject to applicable securities laws.  The Offering is subject to acceptance
of the TSX Venture Exchange.

Potential investors who are interested in participating in the Offering may
reach out directly to jjj@gsilver.com (mailto:jjj@gsilver.com) .

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((1))

 

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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