Guanajuato Silver Company Ltd Stock Price, News & Analysis

Guanajuato Silver Company Ltd has successfully closed an oversubscribed equity financing of subscription receipts totaling US$10.7 million. The financing is aimed at supporting the company's acquisition of Great Panther Mining's Mexican subsidiary, Minera Mexicana Rosario S.A. de C.V., which includes several mining assets. Each subscription receipt will convert into a unit of GSilver upon closing of the acquisition, anticipated within two weeks. Additionally, GSilver secured a US$5 million concentrate pre-payment facility to further finance the acquisition.

Guanajuato Silver Company Ltd. (TSXV:GSVR) announced an expansion of its brokered private placement financing, increasing it to 40,300,000 subscription receipts at C$0.33 each, potentially raising up to C$13.3 million. This financing supports the acquisition of Great Panther's Mexican mining assets, valued at US$14.7 million. The acquisition includes three mines and processing facilities. The financing's closing is anticipated by the week of July 21, 2022.

Key risks include conditions for the release of funds and reliance on market conditions for successful financing.

Guanajuato Silver Company Ltd. (TSXV:GSVR)(OTCQX:GSVRF) has discovered high-grade gold and silver in tailings at its El Cubo Mine Complex in Guanajuato, Mexico. A 43,000 sq. meter area has been identified, with drillhole results showing up to 727 gpt AgEq over 1.2m. Over 95% of the 134 drilled holes encountered significant mineralization. The company plans to implement a gravity separation circuit to process these materials, aiming to expand production without disrupting current operations. Preliminary testing has yielded encouraging results, paving the way for potential economic viability.

Guanajuato Silver Company Ltd. (GSVRF) reported its Q1 2022 results, achieving 275,823 silver equivalent ounces production, including 125,423 ounces of silver and 1,880 ounces of gold. The all-in sustaining cost (AISC) improved by 23% to $25.67 per AgEq ounce. Net revenue soared to $6.3 million, a substantial increase from $4.1 million in Q4 2021. The cash position stands at $6.8 million, while working capital is at -$1.2 million. However, the company continues to face challenges with a mine operating loss of $1.7 million.

Guanajuato Silver Company Ltd. (GSVRF) has drawn down US$7.5 million from a pre-payment facility with OCIM Precious Metals S.A. The funding will support the development and operations at its El Cubo mine in Mexico. This financing is secured against the El Cubo assets and is to be repaid with monthly deliveries of silver and gold over 12 months after a 6-month grace period. CEO James Anderson emphasized the importance of this non-dilutive financing for maintaining a healthy balance sheet as the company ramps up production.

Guanajuato Silver Company reports promising drill results from its El Cubo Mine Complex and El Pinguico project in Mexico. Highlights include Hole VP022-002 producing 1,956 grams per tonne (gpt) Ag and 12.90 gpt Au for 2,988 gpt AgEq over 0.55m. Additional findings include significant silver and gold grades from holes SC22-001, SC22-002, and P21-22, suggesting strong mineralization potential. Ongoing drilling aims to expand resource estimates. The company anticipates quicker access to mineral-rich areas and reduced operational costs through ongoing development efforts.

Guanajuato Silver Company Ltd. (TSXV:GSVR, OTCQX:GSVRF) announces its Q4 and year-end 2021 results. The El Cubo Mine Complex generated $4.1 million in revenue, selling 199,526 silver-equivalent ounces at a realized price of $23.35 per ounce. The company reported a net loss of $4.75 million for Q4, with cash costs of $20.36 per silver-equivalent ounce. As of December 31, 2021, GSilver had a robust cash balance of $8.23 million plus $1.6 million in bullion. With ongoing ramp-up and successful transition to a producer, GSilver aims to solidify its position as a mid-tier producer in Mexico.

Guanajuato Silver Company Ltd. has signed an indicative term sheet with OCIM Precious Metals S.A. for a US$7.5 million non-dilutive financing. This facility, secured against GSilver's El Cubo mine, aims to enhance financial liquidity during its ramp-up phase. The pre-payment facility has an 18-month term and requires a fixed number of silver and gold ounces to be delivered monthly for repayment. GSilver currently has US$7.2 million cash on hand, which is expected to increase to US$9 million post-facility drawdown. Monthly deliveries are anticipated to commence in October 2022.

Guanajuato Silver Company Ltd. (TSXV:GSVR)(OTCQX:GSVRF) appointed Ramon Davila as President, effective immediately. Having previously served on GSilver's Advisory Board and Board of Directors, Davila brings extensive mining experience, notably as COO at First Majestic Silver Corp, where he facilitated significant production growth. His role will focus on transitioning GSilver into a mid-tier precious metals producer in Mexico. The company also signed a six-month consulting agreement with Amvest Capital Inc. for investor relations services, highlighting its commitment to growth.