Guanajuato Silver Announces Brokered LIFE Offering of Units

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VANCOUVER, British Columbia, April 25, 2024 (GLOBE NEWSWIRE) -- Guanajuato Silver Company Ltd. (the “Company” or “GSilver”) (TSXV:GSVR) (OTCQX:GSVRF) announces a brokered, best-efforts Listed Issuer Financing Exemption private placement (the “Offering”) consisting of units of the Company (the “Units”) at a price of C$0.20 per Unit (the “Offering Price”) for minimum aggregate gross proceeds of C$6,000,000 and a maximum of up to C$8,625,000. The Offering is being led by Research Capital Corporation and Red Cloud Securities Inc. as the co-lead agents and joint bookrunners, on behalf of a syndicate of agents (collectively, the “Agents”).

Each Unit will consist of one common share of the Company (“Common Share”) and one Common Share purchase warrant (a “Warrant”). Each Warrant will entitle the holder to purchase an additional Common Share at an exercise price of C$0.30 for a period of 24 months following the closing of the Offering.

Net proceeds from the Offering will be used to, inter alia:

• add to the Company’s underground fleet and ramp up production at GSilver’s producing mines in Guanajuato and Durango.
• fund certain improvements to expand and modernize the processing facilities at the Topia mine and mill complex including capital expenditures and related costs.
• fund corporate head office general and administrative expenses including legal, audit, overhead and salaries for the ensuing 12 months.
• carry out detailed exploration at GSilver’s mineral properties, particularly San Ignacio and Valenciana.

The Units will be offered for sale pursuant to the Listed Issuer Financing Exemption under Part 5A of National Instrument 45-106 – Prospectus Exemptions in all provinces of Canada, except Quebec, and other qualifying jurisdictions, including the United States. The Units offered under the Listed Issuer Financing Exemption will be immediately “free-trading” under applicable Canadian securities laws.

There is an offering document (the "Offering Document") related to this Offering that can be accessed under the Company's profile at www.sedarplus.ca and at the Company's website at www.gsilver.com. Prospective investors should read this Offering Document before making an investment decision.

The Offering is anticipated to close on or about the week of May 6, 2024 (“Closing”), or such later date as the Company and the Agents may determine. The Closing is subject to certain conditions including, but not limited to, the receipt of all necessary regulatory and other approvals, including the approval of the TSX Venture Exchange.