Guanajuato Silver Extinguishes 1st Ocean Partners Debt Facility

VANCOUVER, BC / ACCESSWIRE / May 21, 2024 / Guanajuato Silver Company Ltd. (the "Company" or "GSilver") (TSXV:GSVR)(OTCQX:GSVRF), a significant producer of silver and gold in Mexico, is pleased to announce the complete repayment of the US$5,000,000 concentrate pre-payment facility (the "OP Facility") owed to Ocean Partners UK Limited ("Ocean Partners"), a metal off-take and trading firm (see GSilver news release dated August 30, 2022 - "Guanajuato Silver Draws US$5,000,000 Credit Facility").

James Anderson, Chairman and CEO, said, "The repayment in full of this credit facility reflects the rapidly improving financial position of Guanajuato Silver. The elimination of this loan will have an immediate positive impact on our monthly economic performance, in parallel with the continued ramp-up at our four producing silver mines - with improved tonnage throughput, and at lower operating costs."

Guanajuato Silver now has two loans outstanding. The first loan is a US$5,000,000 silver and gold pre-payment facility (the "Facility") with Swiss-based precious metals trading firm OCIM Metals & Mining S.A. ("OCIM") (see GSilver news release dated March 16, 2023 - "Guanajuato Silver Arranges New US$5,000,000 Facility with OCIM"); the remaining balance of approximately US$3.2M is scheduled to be repaid in full by September, 2024.

Mr. Anderson added, "The elimination of the OCIM pre-payment facility approximately five months from now will further enhance economic performance and flexibility and improve our working capital position. None of Guanajuato Silver's currently producing mines are encumbered by royalties; ultimately our goal is to become a debt-free producer of silver and gold."

Guanajuato Silver's second outstanding loan is the recently announced gold loan credit facility (the "Expanded Facility") with Ocean Partners (see GSilver news release dated February 29,2024 - "Guanajuato Silver Increases Size of Gold Loan Credit Facility to US$13.3M"); the Expanded Facility has a term of 30 months with payments commencing in June 2024.

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.