Business
Guanajuato Silver Announces L.I.F.E. Equity Financing
THIS NEWS RELEASE IS NOT FOR DISTRIBUTION TO U.S. NEWSWIRE SERVICES OR FOR DISSEMINATION IN THE U...
About this update from Guanajuato Silver Company Ltd.
[{"type":"text","content":"Guanajuato Silver Announces L.I.F.E. Equity FinancingTHIS NEWS RELEASE IS NOT FOR DISTRIBUTION TO U.S. NEWSWIRE SERVICES OR FOR DISSEMINATION IN THE UNITED STATESVANCOUVER, BC / ACCESSWIRE / December 12, 2022 / Guanajuato Silver Company Ltd. (the \"Company\" or \"GSilver\") (TSXV:GSVR)(AQUIS:GSVR)(OTCQX:GSVRF) is pleased to announce a non-brokered Listed Issuer Financing Exemption (L.I.F.E) private placement (the \"Offering\") of up to 17,647,059 units (the \"Units\") at C$0.425 for gross proceeds of C$7,500,000, subject to a minimum offering of 7,058,824 Units for gross proceeds of C$3,000,000. Each Unit will consist of one common share of the Company and one-half (1/2) of one transferable share purchase warrant, each whole warrant (a \"Warrant\") exercisable to purchase an additional common share at C$0.60 for a period of two years after closing.Chairman and CEO James Anderson said, \"Over the last two years the Company has purchased premium Mexican silver assets at rock-bottom prices. As we continue to ramp up production at our four producing silver mines, and as the silver price continues to gradually increase, we are acting now to strengthen our balance sheet in order to deploy targeted capex where it can have the most impactful returns on investment.\"Proceeds from the Offering will be used to, inter alia:Ramp up production at the Company's existing mines in and around Guanajuato, Mexico including El Cubo, San Ignacio and Valenciana;Expand and modernize the processing facilities at the Topia mine in Durango, Mexico; with a view to increasing monthly milling capacity from 7,500 tonnes to approximately 10,000 tonnes per month;Increase brownfields exploration programs across all projects, with particular emphasis at the Valenciana and San Ignacio mines; andFund general working capital expenses and strengthen Guanajuato Silver's balance sheet.The Units will be offered for sale pursuant to the Listed Issuer Financing Exemption under Part 5A of National Instrument 45-106 - Prospectus Exemptions in all provinces of Canada, except Quebec, and other qualifying jurisdictions and are expected to be immediately \"free-trading\" under applicable Canadian securities laws.The Units will also be eligible for sale in the United States to \"accredited investors\" under the United States Securities Act of 1933, as amended (the \"1933 Act\") ...