Business
Guanajuato Silver Arranges New US$5,000,000 Facility with OCIM
~ New Facility Fully Repays and Replaces Current OCIM Facility ~ VANCOUVER, BC / ACCESSWIRE /...
About this update from Guanajuato Silver Company Ltd.
[{"type":"text","content":"Guanajuato Silver Arranges New US$5,000,000 Facility with OCIM~ New Facility Fully Repays and Replaces Current OCIM Facility ~VANCOUVER, BC / ACCESSWIRE / March 16, 2023 / Guanajuato Silver Company Ltd. (the \"Company\" or \"GSilver\") (TSXV:GSVR)(AQUIS:GSVR)(OTCQX:GSVRF) is pleased to announce that the Company has arranged a new US$5,000,000 silver and gold pre-payment facility (the \"New Pre-Payment Facility\") with Swiss-based precious metals trading firm, OCIM Metals & Mining S.A. (\"OCIM\"); upon closing, the New Pre-Payment Facility will fully replace the current OCIM gold and silver pre-payment facility (see Guanajuato Silver previous news release dated May 9, 2022 - \"GSilver Draws US$7.5M Silver/Gold Pre-Payment Facility from OCIM\", which has a balance remaining of approximately US$5.5M as of the date hereof. The Company has reduced its obligations to OCIM from a total of approximately US$10.5M in November of 2023 to US$5.0M under this new facility. Any shortfall in the net proceeds from the New Pre-Payment Facility to repay the existing pre-payment facility will be funded out of the Company's current working capital.The New Pre-Payment Facility is for US$5,000,000 and has a 19-month term, which includes an initial three-month delivery-free grace period, and is then repayable over the following 16 months by the Company delivering a set number of silver and gold ounces based on a 12% discount to the LBMA fix price for silver and gold on the date of closing. The New Pre-Payment Facility will be secured by, among other things, a general security agreement over all present and after-acquired personal property of the Company, subject to certain carve-outs, and a share and asset pledge over the Company's El Cubo complex in favour of OCIM. Subject to acceptance of the TSX Venture Exchange, closing of the New-Prepayment Facility is expected to take place on or before March 31, 2023.Lisa Dea, CFO of GSilver, said: \"The new pre-payment facility with OCIM provides additional financial flexibility for our balance sheet as we advance ramp up operations across all four of our producing silver mines in Mexico. The support of our partners at OCIM has proven to be critical to our success and we look forward to continued collaboration with them as we grow Guanajuato Silver into a mid-tier silver producer.\"The Company also announce...