Guanajuato Silver Company Ltd. (TSX-V:GSVR) (OTCQX:GSVRF) is pleased to report that in conjunction with its recent acquisition of Minera Mexicana El Rosario S.A. de C.V. from Great Panther Mining Limited, the Company has closed a US$5M concentrate pre-payment facility with Ocean Partners UK Limited, a metals off-take and trading firm. MMR owns 100% of the Topia Mine in Durango, Mexico and the San Ignacio Mine and Valenciana Mines Complex in Guanajuato, Mexico.

The OP Facility is for a term of 24-months, repayable over a period of 21-months following a three-month grace period, and secured by a guarantee of MMR, a pledge over the Company’s shares of MMR and, if required by Ocean Partners, a first ranking security interest over the property and assets of MMR. Interest on the loan will be calculated at 12-month LIBOR + 7.5%. (See Guanajuato Silver news releases dated June 29, 2022 – GSilver to Acquire 100% of Great Panther’s Mexican Mining Assets – Arranges US$14.0M Debt and Equity Financing and August 4, 2022 – GSilver Closes Acquisition of Great Panther’s Mexican Mining Assets). With the receipt of the OP Facility, Guanajuato Silver has a cash position as of August 29, 2022, of approximately US$9.2M.

Concurrent with the OP Facility, the Company has agreed to sell 100% of its silver and gold concentrate produced from the Valenciana Mines Complex and San Ignacio Mine to Ocean Partners for a period of 24 months subject to a minimum delivery of 6,000 wet metric tonnes of concentrate. Additionally, the Company will sell to Ocean Partners 100% of all zinc concentrate produced from the Topia Mine over the same period, subject to a minimum of 7,800 wet metric tonnes. As further consideration for the OP Facility, the Company has issued a total of 2,500,000 share purchase warrants to Ocean Partners; each warrant entitling Ocean Partners to purchase one common share of GSilver at a price of C$0.50 for period 24 months. The Ocean Partners’ warrants and any common shares issuable upon the exercise thereof are subject to a 4 month hold period expiring on December 30, 2022.

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.