~ Elimination of Debt Facility Demonstrates Improving Financial Position ~
VANCOUVER, BC / ACCESSWIRE / September 19, 2024 / Guanajuato Silver Company Ltd. (the "Company" or "GSilver") (TSXV:GSVR)(OTCQX:GSVRF), a growing gold and silver producer with operations in Mexico, is pleased to announce the complete repayment of its US$7,500,000 silver and gold pre-payment facility to Swiss-based precious metals trading firm, OCIM Metals & Mining S.A. ("OCIM") (See previous Guanajuato Silver news release dated May 9, 2022 - "GSilver Draws US$7.5M Silver/Gold Pre-Payment Facility from OCIM").
James Anderson, Chairman and CEO, said, "Our rapid transition to producer status was made possible by OCIM; they provided the initial financing for our acquisition of the El Cubo mine and milling facility. In OCIM, we have been very fortunate to have had a funding partner steadfast in their support of our goals and strategic initiatives during the early days of the Company's emergence into a significant producer of silver and gold in Mexico. The full repayment of this loan frees up significant monthly cashflows, thereby providing Guanajuato Silver with enhanced financial flexibility and a strengthened working capital position as we continue to advance production at our four producing silver mines in Mexico."
Laurent Mathiot, Chairman and CEO of OCIM, added, "Supporting junior mining companies to reach a new status and increase production is exactly where OCIM can add significant value through our bespoke funding solutions. James Anderson, and his Guanajuato Silver team, have always exhibited the highest level of professionalism, best practices, and business acumen. It has been a pleasure to be associated with Guanajuato Silver and we wish the Company continued future success."
Guanajuato Silver now has a single loan outstanding - the gold loan credit facility (the "Expanded Facility") with Ocean Partners UK Ltd. (see GSilver news release dated February 29, 2024). The Expanded Facility is repayable in equal fixed monthly installments of gold totalling approximately 338 troy ounces per month for a period of 30 months which commenced in June 2024. Notably, Guanajuato Silver averaged monthly production of over 1600 ounces of gold and over 137,000 ounces of silver during the first half of 2024.