Business
GSilver Arranges Early Payment of US$2.5M Note to Endeavour Silver
~ Signs Collective Bargaining Agreement with El Cubo Union ~ VANCOUVER, BC / ACCESSWIRE ...
About this update from Guanajuato Silver Company Ltd.
[{"type":"text","content":"GSilver Arranges Early Payment of US$2.5M Note to Endeavour Silver~ Signs Collective Bargaining Agreement with El Cubo Union ~VANCOUVER, BC / ACCESSWIRE / November 16, 2021 / Guanajuato Silver Company Ltd. (the \"Company\" or \"GSilver\") (TSXV:GSVR)(OTCQX:GSVRF) announces that it has arranged for early payment of the US$2.5 million promissory note issued to Endeavour Silver Corp. (\"Endeavour\") in connection with the Company's acquisition of the El Cubo mine and mill complex due April 9, 2022. In consideration for the early payment, Endeavour has agreed to reduce the principal amount of the note by US$25,000 and settle the Mexican value added tax payable on the purchase price for El Cubo represented by the note (the \"VAT\") for common shares of the Company (the \"VAT Settlement\"). Subject to acceptance of the TSX Venture Exchange (the \"TSXV\"), the Company will issue a total of 901,224 common shares (the \"VAT Shares\") to Endeavour at a deemed price of C$0.55 per share to settle VAT totalling US$396,000 (C$495,573 based on the Bank of Canada indicative exchange of C$1.2517 = US$1.00 on November 15, 2021). The VAT Shares will be subject to a hold period of four months and one day from the date of issuance.Endeavour currently owns 21,331,058 common shares or 10.37% of the issued and outstanding shares of GSilver and will hold a total of 22,232,282 common shares or approximately 10.76% of GSilver following completion of the VAT Settlement. As such, the VAT Settlement constitutes a \"related party transaction\" as defined in Multilateral Instrument 61-101 - Protection of Minority Security Holders in Special Transactions (\"MI 61-101\"). However, as neither the fair market value of the VAT Settlement nor the fair market value of the VAT Shares to be issued to Endeavour will exceed 25% of GSilver's market capitalization, the VAT Settlement will be exempt from the formal valuation and minority shareholder approval requirements of MI 61-101 pursuant to sections 5.5(a) and 5.7(1)(a) of MI 61-101.The Company will file a material change report in connection with the VAT Settlement less than 21 days before the expected closing date of such transaction, which the Company deems reasonable in the circumstances to be able to complete the VAT Settlement in an expeditious manner.Collective Bargaining Agreement:The Company is also pleased to...