17th Mar 2023 14:37
(Alliance News) - Guanajuato Silver Co Ltd said on Friday it arranged a new silver and gold pre-payment facility with OCIM Metals & Mining SA.
The Vancouver-based precious metals producer, which has operations in Mexico, said the USD5.0 million package prepayment facility will "fully replace" the current OCIM gold and silver provision.
Guanajuato said it has a 19-month term, which includes an initial three-month delivery-free "grace period", repayable over the next 16 months.
The new facility will be secured by a general security agreement over all the company's "present and after-acquired" property, as well as a share and asset guarantee over its El Cubo complex, Guanajuato said.
If accepted by the Canadian TSX Venture Exchange, the new prepayment facility will close on or before March 31.
Guanajuato Chief Executive Officer Lisa Dea said: "The new pre-payment facility with OCIM provides additional financial flexibility for our balance sheet as we advance ramp up operations across all four of our producing silver mines in Mexico. The support of our partners at OCIM has proven to be critical to our success and we look forward to continued collaboration with them as we grow Guanajuato Silver into a mid-tier silver producer."
Guanajuato shares were untraded on Aquis Stock Exchange in London on Friday, last traded on Wednesday at 24.96 pence.
By Sabrina Penty; Alliance News reporter
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