Guanajuato Silver Takes Advantage of Favourable Pricing to Further Accelerate Gold Loan Repayment

Executive Summary

• Guanajuato Silver Company Ltd. has accelerated the repayment of a significant portion of its sole outstanding debt obligation, a gold loan facility with Ocean Partners UK Ltd.
• The company repaid 1,448.7 ounces of gold at $3,830 per ounce, utilizing an early payment discount and favorable spot pricing to extinguish all 11 remaining monthly installment obligations.
• A final bullet payment of 2,365.8 ounces remains due upon the loan's maturity in April 2028, with the outstanding balance currently carrying a mark-to-market value of approximately US$10.2 million.

Key Details

• Repayment Quantity: 1,448.7 ounces of gold
• Repurchase Price: US$3,830 per ounce
• Installments Covered: All 11 remaining monthly gold loan repayments
• Remaining Obligation: Final bullet payment of 2,365.8 ounces of gold
• Maturity Date: April 2028
• Loan Status: Sole debt obligation currently held by the Company
• Mark-to-Market Value: Approximately US$10.2 million (based on current spot price)
• Strategic Rationale: Accelerated repayment leveraged a recent pull-back in gold spot prices and an early payment discount to substantially reduce outstanding debt and strengthen the balance sheet.

Notable Quotes

• James Anderson, Chairman and CEO: "Following on the heels of last month's accelerated debt repayment, we have again strengthened our balance sheet by taking advantage of the recent pull-back in the price of gold to substantially reduce our only outstanding debt obligation. Furthermore, this portion of the gold loan has been extinguished at a significant discount to the current gold spot price. We thank Ocean Partners for their continued willingness to constructively work with Guanajuato Silver to provide solutions that allow for further growth."