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Guanajuato Silver Company Ltd., a growing Mexican precious metals producer, recently closed a non-brokered private placement, raising C$8.7 million in gross proceeds. The private placement involved the issuance of 36,335,000 units at a price of C$0.24 per unit. Each unit includes one common share and one-half of one non-transferable common share purchase warrant. The warrants can be exercised to purchase additional common shares at C$0.35 per share within 24 months.

Notably, an anchor order of C$3 million was placed by a corporation owned by Mr. Eric Sprott. Additionally, Myrmikan Gold Fund, LLC, affiliated with a director and the company’s COO, participated in the private placement. This related party transaction was exempt from certain regulatory requirements due to its value being below 25% of the company’s market capitalization.

The net proceeds from the private placement will be used for capital expenditures to expand precious metals production and for general corporate purposes. In related news, Guanajuato Silver settled a contingent payment to Endeavour Silver Corp. for the El Cubo mine and mill complex in Mexico. Over 3 million ounces of silver-equivalent have been produced, triggering a final payment of US$1 million, settled in company shares.

Furthermore, the company settled outstanding liabilities with Ocean Partners UK Limited and other third-party entities by issuing common shares. These debt settlements were completed to manage existing liabilities and further financial obligations. Guanajuato Silver remains focused on reactivating past producing silver and gold mines in central Mexico, with a growing presence in the precious metals market.

It’s important to note that all securities issued as part of the private placement and debt settlements are subject to hold periods in accordance with applicable securities laws. The company continues to make strategic decisions to support its operations and maintain growth in the competitive mining industry. Investors and stakeholders can stay informed about Guanajuato Silver’s developments through its official communications channels.

Overall, Guanajuato Silver’s recent financing activities and debt settlements reflect its commitment to financial stability and operational growth in the Mexican precious metals sector. With a strong focus on production and expansion, the company aims to capitalize on opportunities in the market while upholding regulatory standards and transparency in its transactions.