Beneath the settlement, Guanajuato has the precise to settle half of this fee via the issuance of roughly 2.75 million frequent shares at a value of C$0.245 per share — the 10-day VWAP (volume-weighted common value) of the shares 30 days after the milestone was reached.
On Thursday, the corporate introduced it has agreed to settle the steadiness of this fee via the issuance of roughly 2.72 million frequent shares at a deemed value of C$0.25 per share, the inventory’s market value at press time. The Vancouver-based miner has a market capitalization of C$106 million.
Individually, Guanajuato has additionally agreed to difficulty shares to metals buying and selling agency Ocean Companions to settle two months of excellent funds on an current credit score facility. Ocean Companions will obtain roughly 9.77 million shares for complete consideration of $1.8 million.
“Ocean Companions has been our most well-liked metals dealer from inception; and we’re happy that they’re now one in every of our bigger shareholders with roughly 4.9% of all shares excellent,” Guanajuato Silver CEO James Anderson mentioned in a information launch.
Moreover, the corporate has additionally organized to settle roughly $250,000 in excellent liabilities by issuing roughly 1.36 million frequent shares to an arm’s size third get together.
Following the debt settlements, the Ocean Companions credit score facility will probably be Guanajuato’s solely remaining excellent mortgage and is repayable in equal mounted month-to-month installments of gold totalling roughly 338 ounces per thirty days for a interval of 30 months, which commenced in June 2024.
Along with El Cubo, Guanajuato operates two different mines in Mexico: the Valenciana Complicated and San Ignacio. Collectively, these operations produced 3.5 million oz. of silver-equivalent final yr, a file excessive for the corporate.