Business
GSilver Closes Oversubscribed Equity Financing of US$10,722,659.33
THIS NEWS RELEASE IS NOT FOR DISTRIBUTION TO U.S. NEWSWIRE SERVICES OR FOR DISSEMINATION IN ...
About this update from Guanajuato Silver Company Ltd.
[{"type":"text","content":"GSilver Closes Oversubscribed Equity Financing of US$10,722,659.33THIS NEWS RELEASE IS NOT FOR DISTRIBUTION TO U.S. NEWSWIRE SERVICES OR FOR DISSEMINATION IN THE UNITED STATESVANCOUVER, BC / ACCESSWIRE / July 21, 2022 / Guanajuato Silver Company Ltd. (the \"Company\" or \"GSilver\") (TSXV:GSVR) is pleased to announce the closing of its equity financing of subscription receipts (\"Subscription Receipts\") at a price of C$0.33 (equivalent to approximately US$0.256) per Subscription Receipt (the \"Equity Financing\") announced on June 29, 2022 - \"GSilver to Acquire 100% of Great Panther's Mexican Mining Assets\"; and July 7, 2022 - \"GSilver Increases Debt and Equity Financing Package to US$15.3M.\" Subscriptions totaling US$10,722,659.33 (C$13,822,178.04) have been received with the funds (less 50% of the agent's cash commission and advisory fees) held in escrow by the Company's escrow agent, Odyssey Trust Company. The escrowed funds will be released from escrow upon satisfaction of certain release conditions, including the completion of the Company's purchase of Great Panther Mining's (TSX:GPR) Mexican subsidiary, Minera Mexicana Rosario S.A. de C.V. (\"MMR\"), which owns the producing Topia mine and production facility, the San Ignacio mine, the Valenciana Mine Complex and the Cata processing plant in Mexico (the \"MMR Acquisition\").Upon closing of the MMR Acquisition, each Subscription Receipt will automatically convert into one unit of GSilver consisting of one common share and one share purchase warrant and the escrowed funds and any interest thereon (less the balance of the Agent's cash commission, advisory fees and expenses) will be released to the Company. Each GSilver warrant will be exercisable for one GSilver share at a price of C$0.50 for a period of 36 months following closing of the MMR Acquisition. If the escrow conditions are not satisfied within 90 days, the escrowed funds and any interest thereon will be returned to the purchasers of Subscription Receipts and such Subscription Receipts will be cancelled. The Company anticipates completing the MMR Acquisition within the next two weeks.Research Capital Corporation and Canaccord Genuity Corp. acted as co-lead agents and joint bookrunners for the Equity Financing, along with Echelon Wealth Partners Inc. and Roth Canada Inc. (collectively the \"Agents\"). The Compan...