REG - Guanajuato Silver Co - Final Tranche of C$8.5m Equity Financing Closed

Guanajuato SilverAnnouncement

11/01/2023 14:15

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RNS Number : 4329M  Guanajuato Silver Company Ltd.  11 January 2023

11 January 2023

Guanajuato Silver Company Ltd

("Guanajuato Silver" or the "Company")

 

Final Tranche of C$8.5m Equity Financing Closed

 

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 second and final tranche of its non-brokered private placement offering
(the "Offering") totalling C$8.5 million announced on December 12, 2022 and
expanded on January 5, 2023. The Company issued 4,080,486 units (the "Units")
for gross proceeds of C$1,734,206.55 in the second tranche for a total
Offering of 20,032,682 Units for gross proceeds of C$8,513,889.85. Each Unit
consisted 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.

 

Chairman and CEO, James Anderson, said, "The strengthening of our balance
sheet at this time gives us the flexibility to deploy targeted capex at
specific areas of our business that we believe will prove accretive to
shareholders as we aim to expand production across all four of our producing
silver mines in Mexico."

 

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 and at the Company's website at www.gsilver.com
(http://www.gsilver.com) .

 

The Company has paid total finder's fees in connection with the first and
second tranches of the Offering of $238,262.13 cash and finder warrants to
purchase up to 550,591 common shares of the Company on the same terms as the
Warrants in accordance with the policies of the TSX Venture Exchange.

 

 

 

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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