Guanajuato Silver Confirms Early Loan Repayment


VANCOUVER, BCGuanajuato Silver Company Ltd. (the ‘Company’ or ‘GSilver’) (TSXV:GSVR)(OTCQX:GSVRF)(AQSE:GSVR) is pleased to announce the partial prepayment of the two silver and gold loan/pre-payment facilities with Swiss-based precious metals trading firm, OCIM Precious Metals S.A. (‘OCIM’), (see Guanajuato Silver previous news release dated May 9, 2022 – ‘GSilver Draws US$7.5M Silver/Gold Pre-Payment Facility from OCIM’).

Guanajuato Silver has delivered an aggregate of 96,518 ounces of silver and 846 ounces of gold representing five months’ deliveries of silver and gold ounces to OCIM thereby reducing the total number of monthly delivery payments remaining to OCIM under both facilities to ten. Because this repayment was transacted early, the Company received a discount on the total number of silver ounces paid to OCIM. Furthermore, the gold and silver bullion used to complete this early repayment was purchased by the Company at significantly lower spot prices during the past seven months than the spot prices used to calculate the initial gold and silver repayment ounces due to OCIM, thereby enabling the Company to accrue additional cost savings.

James Anderson, Chairman and CEO of Guanajuato Silver said, ‘Because we pay back OCIM in fixed amounts of silver and gold based on spot prices set at the time of funding, we have regularly taken advantage of dips in the spot market to purchase bullion; having accumulated enough silver and gold to cover five delivery payments, we are making this early repayment to OCIM, and in return, OCIM is compensating us further by providing a discount on the total number of precious metal ounces owed. We look forward to continuing our excellent working relationship with OCIM as we continue to ramp-up production at all four of our producing silver mines in Mexico.’

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.

Contact:

JJ Jennex

Gerente de Comunicaciones

T: 604 723 1433

E: jjj@GSilver.com

WEB: Gsilver.com

Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

Forward-Looking Statements

This news release contains certain forward-looking statements and information, which relate to future events or future performance including, but not limited to, the ability of the Company to take advantage of dips in the spot prices of silver and gold to advantageously purchase bullion; the nature of the Company’s ongoing relationship with OCIM and its ability to continue to make timely deliveries of silver and gold ounces under its existing prepayment facilities; current and projected mined output from the Company’s four active mines, the ability of the Company to continue to increase production, tonnage and recoveries of mineralized material, increase silver and gold grades, improve metallurgical recovery rates, increase revenues, and reduce production costs (including AISC) consistent with the Company’s expectations and production models, the Company’s future development and production activities; estimates of mineral resources and mineralized material at the Company’s mining projects and the accessibility, attractiveness, mineral content and metallurgical characteristics thereof; the opportunities for future acquisitions and future exploration, development and production at the Company’s existing mines and the proposed exploration, development and production programs therefor and the timing and costs thereof; the success related to any future acquisitions, exploration, development and/or production programs; and the Company’s status as one of the fastest growing silver producers in Mexico.

Such forward-looking statements and information reflect management’s current beliefs and are based on information currently available to and assumptions made by the Company; which assumptions, while considered reasonable by the Company, are inherently subject to significant operational, business, economic and regulatory uncertainties and contingencies. These assumptions include: our mineral resource estimates at El Cubo and El Pinguico and estimates of mineralized material at San Ignacio, Valenciana and Topia and the assumptions upon which they are based, including geotechnical and metallurgical characteristics of rock conforming to sampled results and metallurgical performance; available tonnage of mineralized material to be mined and processed; resource grades and recoveries;…



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