Guanajuato Silver Achieves Production Milestone at El Cubo

Guanajuato Silver Company Ltd. (GSilver), a precious metals producer based in Mexico, has surpassed a production milestone at its El Cubo mill. The company announced it has produced over 3,000,000 ounces of silver-equivalent (AgEq), triggering a final contingent payment to Endeavour Silver Corp. relating to the purchase of the El Cubo mine and mill. The payment is partly settled through the issuance of shares.

GSilver acquired El Cubo from Endeavour in 2021 for $15 million. The transaction included a contingent payment of $1 million, which has now been met. Under the agreement, half of this payment is settled with 2,753,265 common shares of the company.

In addition, Ocean Partners UK Limited will receive shares for settling outstanding payments related to GSilver's Gold Loan Credit Facility. This will involve approximately 9,771,635 shares, valued at $1.8 million.

James Anderson, Chairman and CEO of GSilver, credits the company's growth to the flexibility provided by financial partners like Ocean Partners. Additionally, the company plans to issue shares to settle a $250,000 liability with a third party under similar terms.

All these transactions are subject to approval from the TSX Venture Exchange, with a statutory hold period for the shares issued.