Guanajuato Silver closes $43.5-million bought deal

Executive Summary

• Guanajuato Silver Company Ltd. closed its bought‑deal public offering of 87 million units at C$0.50 per unit, generating gross proceeds of C$43.5 million.
• The net proceeds will fund sustaining and development capital for the company’s four operating mines in Mexico, as well as working capital and general corporate purposes.
• An underwriter option to purchase up to an additional 13.05 million units could increase total gross proceeds to C$50.025 million if fully exercised.

Key Details

• Offering size: 87 million units (each unit = 1 common share + ½ warrant).
• Price per unit: C$0.50, yielding gross proceeds of C$43.5 million.
• Underwriters: Canaccord Genuity Corp. and Red Cloud Securities Inc., acting as co‑lead underwriters and joint bookrunners.
• Warrant terms (unit warrant): Right to purchase one common share at C$0.65, exercisable any time before 5 p.m. Vancouver time on Oct. 9, 2028.
• Use of proceeds: Sustaining & development capital for four Mexican mines, working capital, and general corporate purposes.
• Offering mechanics: Prospectus supplement dated Oct. 3, 2025 to the short‑form base shelf prospectus (dated Aug. 21, 2024); offered in Canada (excluding Quebec) and via private placement in the U.S.
• Underwriter option: Up to 13.05 million additional units on same terms; exercisable until Nov. 8, 2025; would raise total gross proceeds to C$50.025 million if fully exercised.
• Commission & broker warrants: Underwriters received cash commission of C$2.595 million and each was issued 2,587,500 non‑transferable broker warrants (exercise price C$0.50, same expiry as unit warrant).
• Control impact: No new insiders or control persons created by the offering.

Notable Quotes

(No executive quotes were provided in the release.)