Guanajuato Silver: GSilver on Track to Close US$15.3 Million Debt and Equity Financing
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Financing the acquisition of three Mexican silver mines on schedule
VANCOUVER, BC /ACCESSWIRE/July 18, 2022/ Guanajuato Silver Company Ltd. (the “Company” Where “GSilver“) (TSXV: GSVR) indicates that as of July 15, 2022, it has received subscriptions totaling approximately US$10.3 million (C$13.3 million) in connection with its equity financing of subscription receipts (the “Equity financing“) announced June 29, 2022 – “GSilver to acquire 100% of Great Panther’s Mexican mining assets “; and July 7, 2022 – “GSilver increases debt and equity financing to US$15.3 million.”
Of these subscriptions, wire transfers totaling approximately US$7.1 million are currently held in escrow by the Company pending closing. The balance of the equity financing – approximately US$3.2 million – is expected to settle on July 21, 2022, as announced and per GSilver’s mantra -“on track, on schedule, on budget“.
James Anderson, President and CEO, said, “The oversubscription of our broker-dealer private placement is a major recognition of the quality of the assets we are purchasing and the execution ability of our team. operating. We look forward to completing the acquisition of Panther Mining’s Great Mexican assets and getting to work building Guanajuato Silver into a mid-tier precious metals producer. »
In conjunction with the equity financing, GSilver has also signed a Concentrated Prepayment Facility term sheet (the “PO facility“) with Ocean Partners (UK), a metals mining and trading company, to provide $5.0m financing for the purchase price of Great Panther Mining’s Mexican subsidiary, Minera Mexicana Rosario SA de CV (“MMR“), and for general corporate and working capital purposes. The OP facility will be for a 24-month term, secured by a pledge of MMR shares and repayable over a 21-month period after a three-month grace period. Interest on the OP Facility will be calculated at 12-month LIBOR + 7.5%. The closing of the OP Facility will occur concurrently with the acquisition of MMR (the “MMR acquisition“).
At Closing, the gross proceeds of the Equity Financing, less 50% of the Agents’ Cash Commission, will be escrow pending satisfaction of certain escrow release conditions, including concurrent closing of the acquisition of MMR and the acceptance of the TSX Venture Exchange (the “TSXV“); the Company expects to close the acquisition of MMR within the next three weeks.
All securities issuable in connection with the MMR Acquisition, Equity Financing and OP Facility, as previously announced, will be subject to a statutory hold period of 4 months and one day from the date of date of issue. There can be no assurance that the MMR Acquisition, Equity Financing and OP Facility, which remain subject to TSXV approval, will be completed on the terms contemplated by the Company or at all.
The Company also announces that its Board of Directors has approved the granting of 5,975,000 stock options, including 3,450,000 options to officers and directors of the Company. The options, which will vest over a two-year period, are exercisable for up to five years from the date of grant and have an exercise price of C$0.33. These options are part of a total compensation package for GSilver directors, officers, employees, advisors and consultants, and are designed to motivate GSilver team members as we embark on our next phase of growth.
About Guanajuato Silver Company Ltd. :
GSilver extracts and processes silver and gold concentrates from its El Cubo mine and mill. The Company continues to delineate additional silver and gold resources by underground drilling at El Cubo and its neighboring El Pinguico project. Both projects are located within 11 km of the city of Guanajuato, Mexico, which has an established mining history of 480 years.
ON BEHALF OF THE BOARD OF DIRECTORS
President and CEO
For more information about Guanajuato Silver Company Ltd., please contact:
JJ Jennex, Communications Manager, +1 (604) 723-1433
Keep following our progress at: www.GSilver.com
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
This new press release does not constitute an offer to sell or a solicitation of an offer to buy securities in the United States. The securities have not been and will not be registered in the name United States Securities Act of 1933, as amended (the “U.S. Securities Law“), or any state securities law and may not be offered or sold in the United States or to or for the account or benefit of a United States Person (as defined in Regulation S under U.S. securities law) unless registered under U.S. securities law and applicable state securities laws or an exemption from such registration is available.
Forward-looking information and statements
This press release contains certain forward-looking statements and information relating to future events or future performance, including, but not limited to, the acquisition of MMR on the proposed terms and conditions and the estimated time for its closing, GSilver’s ability to raise the necessary funds to complete the acquisition of MMR, including equity financing and the OP facility on the terms and conditions, in the amounts and on the timing currently contemplated, the quality of the mining assets of MMR and the Company’s Mexican operating team and the Company’s ability to become a mid-sized precious metals producer. These forward-looking statements and information reflect the management‘s current beliefs and are based on assumptions made by the Company and information currently available to it. Readers are cautioned that these forward-looking statements and information are neither promises nor guarantees, and are subject to risks and uncertainties that may cause future results to differ materially from those expected, including, but not limit, market conditions, availability of financing, currency rate fluctuations, actual results of exploration, development and production activities, unanticipated geological formations and features, environmental risks, future prices of gold, silver and other metals, operating risks, accidents, labor issues, delays in obtaining governmental or regulatory approvals and permits, and other risks in the mining industry. There can be no assurance that GSilver will successfully fund and complete the acquisition of MMR on the contemplated terms or at all. In addition, there is continued uncertainty surrounding the spread and severity of COVID-19, the ongoing war in Ukraine, rising inflation and interest rates (domestically and abroad) and the impact they will have on company operations, supply chains, the ability to access MMR, El Cubo and/or El Pinguico properties or acquire equipment, contractors and other personnel or raising capital in a timely manner or not at all and economic activity in general. All forward-looking statements and information contained in this press release are qualified by these cautionary statements and those contained in our continuous disclosure documents available on SEDAR at www.sedar.com and readers should not place undue reliance on it. Forward-looking statements and information are made as of the date hereof, and the Company undertakes no obligation to update or revise them to reflect new events or circumstances, except as required by law.
THE SOURCE: Guanajuato Silver Company Ltd.
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