Guanajuato Silver To Acquire Bolanitos Gold-Silver Mine in Mexico

Executive Summary

• Guanajuato Silver entered a definitive agreement to acquire the Bolanitos gold‑silver mine from Endeavour Silver for up to US $50 million (US $40 m upfront, US $10 m contingent).
• The deal adds a fifth producing mine, expands the company’s resource base, and integrates the nearby San Ignacio Mine into the Bolanitos processing complex, expected to improve economics and extend mine life.
• Closing is anticipated in January 2026, subject to customary approvals; the transaction includes an investor rights agreement, share‑transfer restrictions, and a US $2.5 m termination fee structure.

Key Details

• Purchase Price: Upfront US $40 million (US $30 m cash + US $10 m GSilver common shares at US $0.2709413 per share).
• Contingent Payments: Two payments of US $5 m each, triggered upon achieving 2 M and 4 M silver‑equivalent ounces respectively; each payment split 50% cash / 50% GSilver shares (subject to a 9.9% ownership cap for Endeavour).
• Closing Timeline: Expected January 2026, pending TSXV approval and execution of the Investor Rights Agreement.
• Termination Fee: US $2.5 m payable by either party under certain conditions; can be satisfied in cash or partially with common shares (US $1 m cash + US $1.5 m shares).
• Asset Portfolio Post‑Closing: 5 producing mines – Topia, Valenciana, El Cubo, Bolanitos, San Ignacio; plus historic Cebada mine (to be reactivated) and Belen exploration project.
• Production Snapshot (2024 Bolanitos): 2,471,027 AgEq oz from 427,646 t at 39 g/t Ag & 1.98 g/t Au; 452,627 oz Ag and 25,230 oz Au produced; recoveries 84.4% (Ag) / 92.7% (Au).
• Processing Capacity: Bolanitos flotation plant – 1,600 t/d, operating at ~75% capacity; integration of San Ignacio material expected to raise utilization and cut transport costs.
• Resource/Reserve Data: Refer to NI 43‑101 report (effective 9 Nov 2022) for detailed Bolanitos resource and reserve estimates (AgEq calculated at 79.6:1 Ag:Au). Updated technical report to be filed within 180 days of this release.
• Management Changes: COO Carlos Silva retiring 31 Dec 2025; Rick Trotman promoted to SVP – Mining Operations, overseeing integration and all mining activities.
• Investor Rights Agreement: Grants Endeavour participation rights, voting alignment for 12 months, and share‑transfer restrictions (12 months full restriction; additional 50% restriction for two more years on half of the base shares).

Notable Quotes

“The numerous advantages of integrating our San Ignacio Mine into the Bolanitos Mines Complex are obvious… we have taken another positive step towards building Mexico's next mid‑tier precious metals producer.” – James Anderson, Chairman & CEO

Material Assessment: Material – Positive (significant acquisition that materially expands GSilver’s asset base, production capacity, and future cash flow potential).