~ Pre-Commissioning of Mill Continues ~
Guanajuato Silver Company Ltd. (TSX-V:GSVR) (OTCQX:GSVRF) is pleased to have entered into a silver and gold concentrate sales agreement with Ocean Partners Ltd. of Berkshire, UK. The Company continues to pre-commission the El Cubo plant in anticipation of first commercial production, which is anticipated in October 2021.
Concentrate sales agreement:
GSilver has signed a silver and gold concentrate sales agreement with MK Metal Trading Mexico, S.A. DE C.V., a division of Ocean Partners Ltd. (“Ocean Partners”) of Berkshire, UK. The agreement is for an 18-month period commencing in October 2021. Additionally, Ocean Partners has agreed to provide the Company with a prepayment financing facility of US$1.5m against the proceeds of concentrate sales. This facility will bear interest at 12-month libor + 6.75% (or approximately 6.95% annually) and be repaid in 15 monthly installments after a 3-month grace period.
Israel Munoz, GSilver’s Corporate Controller said: “We are happy to have concluded this agreement with Ocean Partners. Their proposal was the right combination of exceptional terms combined with meticulous attention to detail. We look forward to establishing the foundations of a long-term business relationship.”
About Ocean Partners:
The Ocean Partners team delivers successful trading services to miners, smelters, and refiners. By applying technical, commercial, and financial insight, they bring expertise to every aspect of their worldwide metals trading business. Their team members have comprehensive backgrounds in mining, geology, metallurgy, and finance.
Update of Operations:
Mining operations are now ongoing at the El Cubo mine. The Company continues to focus on mining from its 2175, 1850, and Cebolletas stope areas, and continues to stockpile mineralised material in the El Cubo laydown yard ahead of commencement of mill processing. (Click and scroll to bottom).
Pre-commissioning of the plant’s primary crusher took place on August 25th, and pre-commissioning of the secondary and tertiary crushers has now also been completed. (Click here for video). Installation of ball mill liners, as well as the installation of additional pumps and upgraded lubricating systems have now mostly been completed. The Company now anticipates the commencement of milling operations in the second week of October 2021.
Hernan Dorado Smith, a director of GSilver and a “qualified person” as defined by National Instrument 43-101, Standards of Disclosure for Mineral Projects, has approved the scientific and technical information contained in this news release.
About Guanajuato Silver Co. Ltd.:
GSilver is a mining development company engaged in reactivating past producing silver and gold mines near the city of Guanajuato, Mexico. The Company is focused on the refurbishment and swift re-commencement of production from its El Cubo mine and mill and its nearby El Pinguico project, as well as the delineation of additional silver and gold resources through underground and surface drilling. Both projects are located within 11km of the city of Guanajuato, which has an established 480-year mining history.
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We acknowledge the [financial] support of the Government of Canada.