Guanajuato Silver Company Ltd. (TSX-V:GSVR) (OTCQX:GSVRF) is pleased to announce that it has closed a US$7.5 million Gold Loan Credit Facility financing with Ocean Partners UK Ltd. The unsecured loan facility is for a term of 36 months, is repayable in equal fixed monthly installments of gold totalling approximately 191 troy ounces per month for a period of 30 months, following a six-month grace period. The number of ounces to be delivered per month is based on a discount to the LBMA (London Bullion Market Association) gold closing price of US$2,046.95 on November 29, 2023.

James Anderson, Chairman & CEO, said, “Ocean Partners has been our preferred metals trading partner since our first sale of precious metals concentrates back in 2021; they have always been first-in-line to offer support for our strategic initiatives as we continue to grow GSilver into a mid-tier producer of precious metals in Mexico.”

As reported on November 24, 2023, GSilver had two outstanding loans due to Ocean Partners totalling approximately US$8.4 million (See MD&A for the three months ended September 30, 2023). Approximately US$4.6 million of the new Facility will be used to extinguish in full one of the outstanding loans due to Ocean Partners; the remainder of the funds will be used for capex initiatives at the Company’s El Cubo Mines Complex and Valenciana Mines Complex, as well as for general working capital purposes.

 

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 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.