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GSilver Draws US$7.5m Silver/Gold Pre-Payment Facility from OCIM
VANCOUVER, BC / ACCESSWIRE / May 9, 2022 / Guanajuato Silver Company Ltd. (the "Company" o...
About this update from Guanajuato Silver Company Ltd.
[{"type":"text","content":"GSilver Draws US$7.5m Silver/Gold Pre-Payment Facility from OCIMVANCOUVER, BC / ACCESSWIRE / May 9, 2022 / Guanajuato Silver Company Ltd. (the \"Company\" or \"GSilver\") (TSXV:GSVR)(OTCQX:GSVRF) has drawn down US$7.5 million from its silver and gold pre-payment facility (the \"Pre-Payment Facility\") with Swiss-based precious metals trading firm, OCIM Precious Metals S.A. (\"OCIM\"), announced March 24, 2022. The net proceeds from the Pre-Payment Facility will be used to strengthen GSilver's balance sheet for ongoing capital expenditures, development and operation of the Company's El Cubo mine and mill complex located in central Mexico. (See GSilver news release dated March 24, 2022 - GSilver Signs Terms Sheet for US$7.5M Silver/Gold Pre-Payment Facility).James Anderson, Chairman and CEO stated: \"This non-dilutive financing demonstrates the advantageous working relationship we have with the team at OCIM and will help GSilver maintain a healthy balance sheet as we complete the remainder of the ramp-up phase at El Cubo. We look forward to continuing our association with OCIM as we work towards becoming a mid-tier precious metals producer in Mexico.\"Transaction DetailsThe Pre-Payment Facility is in the principal amount of US$7.5 million and secured against GSilver's El Cubo assets. The facility is for a term of 18-months and repayable over a period of 12 months, following a six-month grace period, by GSilver delivering a set number of ounces of silver and gold monthly. The number of ounces to be delivered was calculated at a fixed discount to the prevailing London Bullion Market Association (LBMA) spot metals' prices on May 4, 2022.A portion of the Pre-Payment Facility has been used to repay to OCIM the cash equivalent of six of the Company's remaining nine monthly deliveries of silver and gold ounces due to OCIM under the Company's existing loan agreement drawn on July 27, 2021 (See GSilver news release dated June 28, 2021 - Guanajuato Silver Draws US$7.5M from OCIM). The Company had previously made three monthly deliveries of silver and gold to OCIM under the loan agreement, leaving only the final three months' deliveries due November 30, 2022, December 30, 2022 and January 31, 2023 outstanding. The first monthly delivery of silver and gold ounces under the new Pre-Payment Facility is due November 1, 2022.About Guanajuato Silv...