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Guanajuato Silver Achieves Production Milestone at El Cubo
~ Ocean Partners UK Limited Increases Share Position ~ VANCOUVER, BC / ACCESSWIRE / Septembe...
About this update from Guanajuato Silver Company Ltd.
[{"type":"text","content":"Guanajuato Silver Achieves Production Milestone at El Cubo~ Ocean Partners UK Limited Increases Share Position ~ VANCOUVER, BC / ACCESSWIRE / September 26, 2024 / Guanajuato Silver Company Ltd. (the \"Company\" or \"GSilver\") (TSXV:GSVR)(OTCQX:GSVRF), a growing Mexican-based precious metals producer, announces that over 3,000,000 ounces of silver-Equivalent (\"AgEq\") (1) have now been produced at the El Cubo mill; this significant milestone has triggered the last remaining contingent payment owed to Endeavour Silver Corp. (\"Endeavour\") as part of the purchase of the El Cubo mine and mill complex (\"El Cubo\") located in Guanajuato, Mexico.In 2021, Guanajuato Silver purchased El Cubo from Endeavour for US$15,000,000; the transaction included a contingent payment that would see Endeavour paid an additional US$1,000,000 once 3,000,000 AgEq ounces had been produced at El Cubo (the \"Contingent Payment\")(See GSilver news release dated December 21, 2020 - \"GSilver to Acquire El Cubo Mine & Mill from Endeavour Silver Corp). As part of the agreement, Guanajuato Silver has the right to settle one half of the Contingent Payment through the issuance to Endeavour of 2,753,265 common shares in the capital of the Company at a deemed price of C$0.245 per share, this being the 10-day VWAP price of the shares 30 days after the milestone was reached. As part of a shares for debt agreement, Endeavour has agreed to settle the balance of the contingent payment through the issuance of approximately 2,720,000 common shares in the capital of the Company at a deemed price of C$0.25 per share (the \"Endeavour Debt Settlement\").Additionally, Ocean Partners UK Limited (\"Ocean Partners\"), a metals off-take and trading firm, has agreed to accept shares for debt for two months' of outstanding payments on the existing Gold Loan Credit Facility (the \"Expanded Facility\"), which the Company began paying down in June 2024 (See GSilver news releases dated December 5, 2023 and February 29, 2024). Ocean Partners will receive approximately 9,771,635 shares for total consideration of approximately US$1.8M under the same terms as the Endeavour Debt Settlement (the \"OP Debt Settlement\"). The Expanded Facility is Guanajuato Silver's only remaining outstanding loan and is repayable in equal fixed monthly installments of gold totalling approximately 338 tro...