Guanajuato Silver closes $8.01-million financing
2023-08-10 12:01 ET - News Release
Mr. James Anderson reports
GUANAJUATO SILVER CLOSES C$8,010,000 "BOUGHT DEAL" FINANCING
Guanajuato Silver Company Ltd. has closed its previously announced bought deal offering of 22.25 million units of the company at a price of 36 cents per unit for gross proceeds of $8.01-million with Cantor Fitzgerald Canada Corp., who acted as the sole underwriter and bookrunner.
James Anderson, Chairman & CEO, said, "We are pleased to have worked with Cantor Fitzgerald, a financial services firm with over 70 years of market experience, on this bought deal financing, which will help us execute our growth strategy as we continue to build Guanajuato Silver into Mexico's next mid-tier silver producer."
Each Unit consisted of one common share of the Company (a "Unit Share") and one common share purchase warrant (a "Warrant"). Each Warrant entitles the holder to acquire one common share of the Company for 18 months from the date of closing at a price of C$0.55. The Company has paid Cantor Fitzgerald a cash commission totalling $480,600 or 6.0% of the gross proceeds of the Offering and 1,335,000 broker warrants representing 6.0% of the total number of Units sold. The broker warrants are exercisable on the same terms as the Warrants. The net proceeds from the Offering will be used for working capital and general corporate purposes.
The Offering also included a lead order from a large U.S. based investment fund totalling 8,500,000 Units or $3,060,000. In accordance with the fund's internal investment policies, the fund could accept only a reduced number of Warrants, being 7,396,381 Warrants, as part of its subscription. The remaining 1,103,619 Warrants were issued to Cantor Fitzgerald, as underwriter, in consideration for, among other services, guaranteeing the Offering on a bought deal basis.
All securities issued under the Offering are subject to a four month hold period expiring December 11, 2023.
About Guanajuato Silver
Guanajuato Silver 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 Mines Complex, 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.
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