Guanajuato Silver Company Ltd. (TSX-V:GSVR) (AQUIS:GSVR) (OTCQX:GSVRF) is pleased to announce a non-brokered Listed Issuer Financing Exemption (L.I.F.E) private placement of up to 17,647,059 units at C$0.425 for gross proceeds of C$7,500,000, subject to a minimum offering of 7,058,824 Units for gross proceeds of C$3,000,000. Each Unit will consist of one common share of the Company and one-half of one transferable share purchase warrant, each whole warrant exercisable to purchase an additional common share at C$0.60 for a period of two years after closing.

Chairman and CEO James Anderson said, “Over the last two years the Company has purchased premium Mexican silver assets at rock-bottom prices. As we continue to ramp up production at our four producing silver mines, and as the silver price continues to gradually increase, we are acting now to strengthen our balance sheet in order to deploy targeted capex where it can have the most impactful returns on investment.”

Proceeds from the Offering will be used to, inter alia:

• Ramp up production at the Company’s existing mines in and around Guanajuato, Mexico including El Cubo, San Ignacio and Valenciana;
• Expand and modernize the processing facilities at the Topia mine in Durango, Mexico; with a view to increasing monthly milling capacity from 7,500 tonnes to approximately 10,000 tonnes per month;
• Increase brownfields exploration programs across all projects, with particular emphasis at the Valenciana and San Ignacio mines; and
• Fund general working capital expenses and strengthen Guanajuato Silver’s balance sheet.

The Units will be offered for sale pursuant to the Listed Issuer Financing Exemption under Part 5A of National Instrument 45-106 – Prospectus Exemptions in all provinces of Canada, except Quebec, and other qualifying jurisdictions and are expected to be immediately “free-trading” under applicable Canadian securities laws.

The Units will also be eligible for sale in the United States to “accredited investors” under the United States Securities Act of 1933, as amended (the “1933 Act“) by way of private placement pursuant to available exemptions from the registration requirements of the 1933 Act, and resales of the Units will be permitted outside the United States pursuant to Regulation S under the 1933 Act.

There is an offering document related to this Offering that can be accessed under the Company’s profile at www.sedar.com and at the Company’s website at www.gsilver.com. Prospective investors should read this Offering Document before making an investment decision.

Closing of the Offering, which may take place in one or more tranches, is intended to occur on or around December 20, 2022.

A finder’s fee of 6% cash and 6% finder’s warrants, each finder’s warrant to be exercisable on the same terms as the Warrants forming part of the Units, will be payable to finders who introduce purchasers of Units to the Company, subject to applicable securities laws. The Offering is subject to acceptance of the TSX Venture Exchange.

Potential investors who are interested in participating in the Offering may reach out directly to jjj@gsilver.com.

This new release does not constitute an offer to sell or a solicitation of an offer to buy any of the securities in the United States. The securities have not been and will not be registered under the 1933 Act, or any state securities laws and may not be offered or sold within the United States or to or for the account or benefit of a U.S. person (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 is available.

About Guanajuato Silver

GSilver is a precious metals producer engaged in reactivating past producing silver and gold mines near the city of Guanajuato, Mexico, which has an established 480-year mining history. With five mines and three processing facilities, the Company is one of the fastest growing silver producers in Mexico.