Guanajuato closes $18-million private placement

Executive Summary

• Guanajuato Silver Company Ltd. closed a non‑brokered listed issuer financing exemption private placement, raising gross proceeds of C$18 million (≈ US$18 million).
• The offering consisted of 60 million units at C$0.30 per unit, each unit comprising one common share and half of a common‑share purchase warrant (exercise price C$0.45, 36‑month term).
• Net proceeds will be used to upgrade underground mining fleet, expand processing facilities at Topia, fund G&A expenses for the next 12 months, and accelerate exploration at San Ignacio and Valenciana.

Key Details

• Units sold: 60 million units @ C$0.30 per unit → C$18 M gross proceeds.
• Unit composition: 1 common share + ½ warrant; warrants exercisable at C$0.45 for up to 36 months (until Aug 21 2028).
• Use of proceeds:
• Add to underground mining fleet and ramp production at Guanajuato & Durango mines.
• Finance upgrades/modernization of processing facilities at Topia mine/mill complex.
• Cover corporate head‑office G&A expenses (legal, audit, overhead, salaries) for the next 12 months.
• Conduct detailed exploration at San Ignacio and Valenciana properties.
• Finder compensation: Cash commission of C$520,463.92 plus 1,727,904 non‑transferable finder warrants (exercise price equal to offering price; lock‑up until Dec 22 2025).
• Advisory agreement with Research Capital: Work fee C$136,500 and issuance of 458,500 adviser warrants (same exercise terms); subject to a 4‑month‑plus‑1‑day hold period.
• Related‑party participation: Directors/officers purchased 2.1 million units for C$630,000; transaction exempt under MI 61‑101 as it is ≤25 % of market cap.
• Regulatory notes: Offering made under NI 45‑106 Part 5A (listed issuer financing exemption) across Canada (except Quebec) and other qualifying jurisdictions, including the U.S.; units free‑trading immediately; U.S. investors subject to additional trade restrictions.

Notable Quotes

“With this strengthening of our balance sheet, Guanajuato Silver is now positioned to make significant upgrades to our underground mining fleet and to our three processing facilities… current exploration and development drill programs will be scaled up considerably as we move to expand our mineral resource base.” – James Anderson, Chairman & CEO

Materiality Assessment: Material – Positive (significant capital raise that materially enhances balance sheet and funding for operational expansion).