REG - Guanajuato Silver Co - Shares for Debt Settlement Closed

Guanajuato SilverAnnouncement

13/10/2023 13:00

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RNS Number : 0801Q  Guanajuato Silver Company Ltd.  13 October 2023

 

 
 

Guanajuato Silver Closes Previously Announced Shares for Debt Settlement

Guanajuato Silver Company Ltd. (the "Company" or "GSilver")
(TSXV:GSVR)(AQUIS:GSVR)(OTCQX:GSVRF) is pleased to announce that it has
completed its previously announced shares-for-debt transaction (the
"Transaction") totaling C$937,065.60 (see GSilver news release dated August
23, 2023 - "Guanajuato Silver Provides Drill Results from Topia Mine
(https://gsilver.com/news/2023c/862-uanajuatoilverrovidesrillesultsfromopiaine20230823)
") through the issuance of 2,928,330 common shares ("Shares"), including
468,750 Shares issued to one non-arms-length parties to settle of indebtedness
totaling C$150,000. The Shares issued for this debt settlement are subject to
a four-month hold period expiring February 13, 2024.

The issuance of 468,750 Shares indirectly to Hernan Dorado who is an insider
of the Company (a "Related Party"), is considered "a related party
transaction" within the meaning of Policy 5.9 of the TSX Venture Exchange (the
"Policy") and Multilateral Instrument 61-101 - Protection of Minority Security
holders in Special Transactions ("MI 61-101") adopted in the Policy. The
Company is relying on the exemptions from the formal valuation and minority
shareholder approval requirements of MI 61-101 contained in sections 5.5(a)
and 5.7(1)(a) of MI 61-101 in respect of such Related Party's participation in
the Transaction as neither the fair market value of the Transaction, nor the
fair market value of the Shares to be issued thereunder, insofar as it
involves Related Parties, exceeds 25% of the Company's market capitalization
(all as determined under MI 61-101). The material change report of GSilver to
be filed in connection with this announcement of the Transaction will be filed
less than 21 days in advance of the closing of the Transaction, which GSilver
considers reasonable within the context of current market conditions and the
desire of all parties to complete the Transaction as expeditiously as
possible. The securities of the Company that have been acquired by the Related
Party were acquired pursuant to an exemption from the prospectus requirement
in section 2.14 of National Instrument 45-106 - Prospectus Exemptions.

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, 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. Additionally, 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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