Guanajuato Silver Company Ltd. (TSX-V:GSVR) (AQUIS:GSVR) (OTCQX:GSVRF) is pleased to announce that it has closed the first tranche of its non-brokered Listed Issuer Financing Exemption private placement of up to 17,647,059 units at a price of C$0.425 per Unit for maximum gross proceeds of C$7.5 million (see GSilver news release dated December 12, 2022 – “Guanajuato Silver Announces L.I.F.E. Equity Financing“).

The Company has issued a total of 15,952,196 Units for gross proceeds of C$6,779,683 in the first tranche; each Unit consisting of one common share of the Company  and one-half of one transferable share purchase warrant, each whole warrant exercisable to purchase an additional Share at C$0.60 for a period of two years after closing.

The Shares and Warrants were issued by the Company pursuant to the Listed Issuer Financing Exemption under Part 5A of National Instrument 45-106 – Prospectus Exemptions and therefore are “free-trading” under applicable Canadian securities laws.

Certain directors and officers of the Company participated in the first tranche of the Offering for an aggregate of 66,000 Units and the Company relied on the exemptions from the “formal valuation” and “minority shareholder approval” requirements of Multilateral Instrument 61-101 – Protection of Minority Security Holders in Special Transactions contained in subsections 5.5(a) and 5.7(1)(a) of MI 61-101 on the basis that neither the fair market value of the Units subscribed for, nor the consideration for the Units paid, by the insiders exceeded 25% of the Company’s market capitalization.

Finder’s fees totalling C$222,962.13 cash and 514,591 finder’s warrants were paid to various registered dealers in connection with the closing of the first tranche of the Offering. Each finder’s warrant entitles the holder to acquire one Share at a price of C$0.60 for a period of 24 months from closing.

The net proceeds of the Offering will be used to, among other things, ramp up production at the Company’s existing mines in and about Guanajuato, Mexico including El Cubo, San Ignacio and Valenciana, expand and modernize the processing facilities at the Topia mine in Durango, Mexico, increase brownfields’ exploration programs, and fund general and administrative expenses as more particularly described in the Company’s offering document dated December 12, 2022 (the “Offering Document“) prepared in connection with the Offering. A copy of the Offering Document can be accessed under the Company’s profile at www.sedar.com and at the Company’s website at www.gsilver.com.

The closing of a second tranche of the Offering is expected to occur on or about January 12, 2023. Potential investors who are interested in participating in the second tranche of the Offering may reach out directly to jjj@gsilver.com and should read the Offering Document before making an investment decision.

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 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.