Business
Guanajuato Silver Closes C$6.8 Million First Tranche Equity Financing
VANCOUVER, BC / ACCESSWIRE / December 22, 2022 / Guanajuato Silver Company Ltd. (the " Company "...
About this update from Guanajuato Silver Company Ltd.
[{"type":"text","content":"\nGuanajuato Silver Closes C$6.8 Million First Tranche Equity FinancingVANCOUVER, BC / ACCESSWIRE / December 22, 2022 / Guanajuato Silver Company Ltd. (the \"Company\" or \"GSilver\") (TSXV:GSVR)(AQUIS:GSVR)(OTCQX:GSVRF) is pleased to announce that it has closed the first tranche of its non-brokered Listed Issuer Financing Exemption private placement of up to 17,647,059 units (the \"Units\") at a price of C$0.425 per Unit for maximum gross proceeds of C$7.5 million (the \"Offering\") (see GSilver news release dated December 12, 2022 - \"Guanajuato Silver Announces L.I.F.E. Equity Financing\"). The Company has issued a total of 15,952,196 Units for gross proceeds of C$6,779,683 in the first tranche; each Unit consisting of one common share of the Company (a \"Share\") and one-half (1/2) of one transferable share purchase warrant, each whole warrant (a \"Warrant\") exercisable to purchase an additional Share at C$0.60 for a period of two years after closing.The Shares and Warrants were issued by the Company pursuant to the Listed Issuer Financing Exemption under Part 5A of National Instrument 45-106 - Prospectus Exemptions and therefore are \"free-trading\" under applicable Canadian securities laws.Certain directors and officers of the Company participated in the first tranche of the Offering for an aggregate of 66,000 Units and the Company relied on the exemptions from the \"formal valuation\" and \"minority shareholder approval\" requirements of Multilateral Instrument 61-101 - Protection of Minority Security Holders in Special Transactions (\"MI 61-101\") contained in subsections 5.5(a) and 5.7(1)(a) of MI 61-101 on the basis that neither the fair market value of the Units subscribed for, nor the consideration for the Units paid, by the insiders exceeded 25% of the Company's market capitalization.Finder's fees totalling C$222,962.13 cash and 514,591 finder's warrants were paid to various registered dealers in connection with the closing of the first tranche of the Offering. Each finder's warrant entitles the holder to acquire one Share at a price of C$0.60 for a period of 24 months from closing.The net proceeds of the Offering will be used to, among other things, ramp up production at the Company's existing mines in and about Guanajuato, Mexico including El Cubo, San Ignacio and Valenciana, expand and modernize the processing f...