Gsilver Signs Term Sheet for US$7.5 Million Silver/Gold Prepayment Facility

Expands its relationship with OCIM to improve financial liquidity

VANCOUVER, BC /ACCESSWIRE/March 24, 2022/ Guanajuato Silver Company Ltd. (the “Company” Where “GSilver”) GSVRGSVRF is pleased to announce that it has signed an indicative term sheet with a Swiss precious metals trading company: OCIM Precious Metals SA (“DISO“), to provide non-dilutive financing of US$7.5 million in the form of a silver and gold prepayment facility to strengthen its balance sheet during the ramp-up phase of the mining complex and the company’s El Cubo mill located approximately 11 kilometers east of the city of Guanajuato in central Mexico.

James Anderson, President and Chief Executive Officer, said, “We are very pleased to extend our relationship with OCIM during this period of high silver and gold prices, which reduce the number of ounces of cash and gold needed to repay the facility. We have a very good working relationship with the OCIM team and look forward to working with them in the future regarding the potential provision of additional capital for GSilver’s future growth plans. »

OCIM prepayment details:

The prepayment facility is for an 18-month term, secured by GSilver’s El Cubo assets and repayable over a 12-month period (after a six-month grace period) by GSilver delivering a fixed number of ounces of silver and gold per month. . The number of ounces to be delivered will be calculated at a fixed discount to LBMA spot metal prices prevailing on the day the facility is drawn. This financing is subject to various OCIM conditions, including completion of satisfactory due diligence, execution of binding prepayment documents and acceptance on TSXV, which both parties expect to finalize in April 2022.

The Company will use part of the facility to repay the majority of its outstanding debt with OCIM, drawn on July 27, 2021. To date, the Company has repaid 2 months of silver and gold deliveries due under of its current facility with OCIM, and it will use the partial proceeds of this new prepayment facility to repay deliveries for the next 7 months, leaving only deliveries for the last three months under the existing facility due November 30, 2022, on December 30, 2022 and January 31, 2023 totaling 57,228 ounces of silver and 535.2 ounces of gold to be repaid.

As of today, the Company has approximately US$7.2 million in cash; the company expects to have approximately US$9.0 million in cash after drawing down this second OCIM facility in early April 2022. Monthly deliveries of silver and gold ounces to OCIM under of the new facility are expected to commence in October 2022.

About Guanajuato Silver Company Ltd. :

GSilver is a precious metals producer engaged in the reactivation of former silver and gold mines near the city of Guanajuato, Mexico. The Company is currently producing silver and gold from its wholly owned El Cubo and El Pinguico projects, while simultaneously advancing the restart of the El Pinguico mine. Both projects are located within 11 km of the city of Guanajuato, which has an established mining history of 480 years.


“James Anderson”
President and CEO

For more information about Guanajuato Silver Company Ltd., please contact:
JJ Jennex, Communications Manager
Phone. : 604 723 1433
E: [email protected]

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.

Forward-looking statements

This press release contains certain forward-looking statements and information relating to future events or future performance, including, but not limited to, the total number of ounces of silver and gold to be delivered to OCIM within the under the new prepayment facility, the net proceeds available to GSilver under the new facility after repayment to OCIM in cash of certain monthly deliveries of silver and gold under the current loan facility and the expected closing date of the new prepayment facility.

These forward-looking statements and information reflect the current beliefs of management and are based on currently available information and assumptions made by the Company; which assumptions, although considered reasonable by the Company, are inherently subject to significant operational, commercial, economic and regulatory uncertainties and contingencies. These assumptions include: our mineral resource estimates at El Cubo and El Pinguico and the assumptions on which they are based, including geotechnical and metallurgical characteristics of the rock consistent with sampled results and metallurgical performance; the available tonnage of mineralized material to be mined and processed; resource grades and recoveries; assumptions and discount rates are appropriately applied to production estimates; the success of the Company’s combined El Cubo/El Pinguico operation; the Company’s ability to obtain mineralized material from outside sources for processing; remaining silver and gold prices as estimated; exchange rates remaining as estimated; the availability of funds for Company projects; capital, decommissioning and reclamation estimates; prices of energy inputs, labour, materials, supplies and services (including transportation); no work interruption; no unforeseen delays or interruptions in planned construction and production; all necessary permits, licenses and regulatory approvals are received in a timely manner; and the ability to comply with environmental, health and safety laws. The foregoing list of assumptions is not exhaustive.

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 (including political, economic and financial) conditions, availability of financing, exchange rate fluctuations, actual results of exploration, development and production activities, actual resource grades and silver and gold recoveries, availability of third party mineralized materials for processing, unforeseen geological or structural formations and features, risky environmental conditions, future prices of gold, silver and other metals, operational risks, accidents, labor problems, equipment or personnel delays, delays in obtaining governmental or regulatory approvals and permits, inadequate insurance, acts of terrorism, the commencement, continuation or escalation of any war, invasion or armed conflict, and other risks in the mining industry. There can be no assurance that GSilver will be able to increase production from the El Cubo plant to process mineralized materials to produce silver and gold concentrate in the quantities, grades, recoveries, costs and planned schedule. Additionally, GSilver’s decision to process mineralized material from its estimated resources at El Cubo and stockpiles underground and above El Pinguico through the El Cubo plant is unfounded. on a feasibility study of mineral reserves demonstrating economic and technical viability and is therefore subject to increased uncertainty and risk of failure, both economically and technically. Mineral Resources that are not Mineral Reserves have not demonstrated economic viability, are considered too geologically speculative for economic considerations to be applied to them, and may be materially affected by environmental, permitting, legal, title, socio-political, marketing and other. relevant questions. There can be no assurance that the results of the Company’s preliminary economic assessment for 2021 and projected silver and gold production will materialize. In addition, the new prepayment facility with OCIM is subject to, among other things, the completion of satisfactory due diligence by OCIM and formal documentation and there can be no assurance that the facility will be realized on the terms currently contemplated or not of the all. There is also uncertainty about the continued spread of COVID-19 and variants of concern and the impact they will have on company operations, supply chains, the ability to access El Pinguico and/or or El Cubo or to procure equipment, contractors and other personnel on a timely basis or not at all and economic activity in general. All forward-looking statements made in this press release are qualified by these cautionary statements and those contained in our continuous disclosure documents available on SEDAR at, including the Company’s Annual Information Form for its fiscal year ended December 31, 2020. Accordingly, readers should not place undue reliance on forward-looking statements and information. These 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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