Shares for Debt Settlement Closed

Guanajuato Silver Company Ltd.

13 October 2023

 

Guanajuato Silver Closes Previously Announced Shares for Debt Settlement

Guanajuato Silver Company Ltd. (the "Company" or "GSilver") (TSXV:GSVR)(AQUIS:GSVR)(OTCQX:GSVRF) is pleased to announce that it has completed its previously announced shares-for-debt transaction (the "Transaction") totaling C$937,065.60 (see GSilver news release dated August 23, 2023 - "Guanajuato Silver Provides Drill Results from Topia Mine") through the issuance of 2,928,330 common shares ("Shares"), including 468,750 Shares issued to one non-arms-length parties to settle of indebtedness totaling C$150,000. The Shares issued for this debt settlement are subject to a four-month hold period expiring February 13, 2024.

The issuance of 468,750 Shares indirectly to Hernan Dorado who is an insider of the Company (a "Related Party"), is considered "a related party transaction" within the meaning of Policy 5.9 of the TSX Venture Exchange (the "Policy") and Multilateral Instrument 61-101 - Protection of Minority Security holders in Special Transactions ("MI 61-101") adopted in the Policy. The Company is relying on the exemptions from the formal valuation and minority shareholder approval requirements of MI 61-101 contained in sections 5.5(a) and 5.7(1)(a) of MI 61-101 in respect of such Related Party's participation in the Transaction as neither the fair market value of the Transaction, nor the fair market value of the Shares to be issued thereunder, insofar as it involves Related Parties, exceeds 25% of the Company's market capitalization (all as determined under MI 61-101). The material change report of GSilver to be filed in connection with this announcement of the Transaction will be filed less than 21 days in advance of the closing of the Transaction, which GSilver considers reasonable within the context of current market conditions and the desire of all parties to complete the Transaction as expeditiously as possible. The securities of the Company that have been acquired by the Related Party were acquired pursuant to an exemption from the prospectus requirement in section 2.14 of National Instrument 45-106 - Prospectus Exemptions.

For further information regarding Guanajuato Silver Company Ltd., please contact:

JJ Jennex, Gerente de Comunicaciones, T: 604 723 1433

E: [e-mail]

Gsilver.com

VSA Capital - AQSE Corporate Adviser 

T: [phone]

Simon Barton – Corporate Finance

Thomas Jackson – Corporate Finance 

Andrew Monk – Corporate Broking

David Scriven – Corporate Broking

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. 

 

END