Guanajuato Silver Company Ltd.  (TSX-V:GSVR), a rapidly growing Mexican precious metals producer, announces a non-brokered private placement of up to 33,333,333 units at a price of $0.24 per Unit for gross proceeds of up to C$8,000,000.

Each Unit will consist of one common share in the capital of the Company and one-half of one non-transferable Common Share purchase warrant. Each Warrant shall entitle the holder thereof to purchase one additional Common Share at an exercise price of $0.35 per Warrant Share for a period of 24 months following the closing date of the Private Placement.

2176423 Ontario Ltd., a corporation beneficially owned and controlled by Mr. Eric Sprott, intends to subscribe for C$3,000,000 of the Private Placement.

James Anderson, chairman and chief executive officer, said: “We are extremely pleased to welcome the participation of Mr. Eric Sprott in this financing. His continued support is a strong endorsement of Guanajuato Silver’s vision and potential. This financing will provide us with the necessary capital to accelerate production in response to rapidly rising silver prices. We also intend to expand exploration activities at all four of our producing silver mines in Mexico while continuing our strategy of disciplined growth.”

The Private Placement is scheduled to close on or about October 28, 2024, and is subject to certain conditions including, but not limited to, the receipt of all necessary approvals including the approval of the TSX Venture Exchange.

The Company may pay finder’s fees to eligible finders in accordance with the policies of the TSXV. The Company expects to pay finder’s fees equal to 6% cash and 6% non-transferrable broker warrants, with such broker warrants entitling the holder thereof to purchase one additional Common Share (each, a “Broker Warrant Share”) at an exercise price of $0.24 per Broker Warrant Share for a period of 24 months following the closing date of the Private Placement. The Company may settle all or part of the cash portion of the finder’s fee through the issuance of Units.

All securities issued pursuant to the Private Placement will be subject to a hold period of four months and one day from the closing date of the Private Placement in accordance with applicable securities laws.

The Company intends to use the net proceeds of the Private Placement for working capital and general corporate purposes.

This press release shall not constitute an offer to sell or the solicitation of an offer to buy securities in the United States or to U.S. Persons (as that term is defined in Rule 902(k) of Regulation S), nor shall this press release be construed to constitute such an offer or solicitation in any jurisdiction in which such offer, solicitation or sale would be unlawful. The securities being offered have not been, nor will they be, registered under the United States Securities Act of 1933, as amended (the “1933 Act“) or under any U.S. state securities laws, and may not be offered or sold in the United States absent registration or an applicable exemption from the registration requirements of the 1933 Act, as amended, and applicable state securities laws.

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.