Guanajuato Silver Company Ltd. (TSX-V:GSVR) (AQUIS:GSVR) is pleased to announce the closing of its previously announced bought deal offering of 22,250,000 units of the Company at a price of C$0.36 per Unit for gross proceeds of C$8,010,000 with Cantor Fitzgerald Canada Corporation, who acted as the sole underwriter and bookrunner.

James Anderson, Chairman & CEO, said, “We are pleased to have worked with Cantor Fitzgerald, a financial services firm with over 70 years of market experience, on this bought deal financing, which will help us execute our growth strategy as we continue to build Guanajuato Silver into Mexico’s next mid-tier silver producer.”

Each Unit consisted of one common share of the Company and one common share purchase warrant. Each Warrant entitles the holder to acquire one common share of the Company for 18 months from the date of closing at a price of C$0.55. The Company has paid Cantor Fitzgerald a cash commission totalling $480,600 or 6.0% of the gross proceeds of the Offering and 1,335,000 broker warrants representing 6.0% of the total number of Units sold. The broker warrants are exercisable on the same terms as the Warrants. The net proceeds from the Offering will be used for working capital and general corporate purposes.

The Offering also included a lead order from a large U.S. based investment fund totalling 8,500,000 Units or $3,060,000. In accordance with the fund’s internal investment policies, the fund could accept only a reduced number of Warrants, being 7,396,381 Warrants, as part of its subscription. The remaining 1,103,619 Warrants were issued to Cantor Fitzgerald, as underwriter, in consideration for, among other services, guaranteeing the Offering on a bought deal basis.

All securities issued under the Offering are subject to a four month hold period expiring December 11, 2023.

This news release does not constitute an offer to sell or a solicitation of an offer to buy nor shall there be any sale of any of the securities in any jurisdiction in which such offer, solicitation or sale would be unlawful, including any of the securities in the United States of America. The securities have not been and will not be registered under the United States Securities Act of 1933, as amended (the “1933 Act”) or any state securities laws and may not be offered or sold within the United States or to, or for account or benefit of, U.S. Persons (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 requirements is available.

About Guanajuato Silver

Guanajuato Silver 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 Mines Complex, 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.