- Guanajuato Silver (TSXV:GSVR), a Mexican gold and silver stock, seeks to raise up to C$8 million through a non-brokered private placement
- Eric Sprott will invest C$3 million in the financing
- Guanajuato Silver is a precious metals producer reactivating past-producing silver and gold mines in Mexico
- Guanajuato Silver stock has given back 9.68 per cent year-over-year, but remains up by 600 per cent since 2020
Guanajuato Silver (TSXV:GSVR), a Mexican gold and silver stock, seeks to raise up to C$8 million through a non-brokered private placement.
The company will use the proceeds for working capital and general corporate purposes, granting it flexibility to modify production based on silver market dynamics. The price of silver has added almost 50 per cent year-over-year, trading at US$34.33 per ounce at the time of writing.
Eric Sprott, one of Canada’s most decorated mining investors, will pick up C$3 million in shares through 2176423 Ontario Ltd., a corporation he beneficially owns and controls.
Sprott’s interest stems from Guanajuato’s ability to maximize leverage to the silver price through its six mining production areas, four of which are currently in production. Collectively, these areas have allowed the company to grow revenue by 16 times from US$4.12 million in 2021 to US$66.17 million in 2023, with results in 2024 on pace for a record-breaking year.
Transaction details
Guanajuato will offer up to 33,333,333 units priced at C$0.24 each, with each unit consisting of one common share and one-half of one non-transferable share purchase warrant.
Each warrant allows the owner to purchase one additional share for C$0.35 for 24 months after the financing’s closing date, which is expected to be on or about Oct. 28, 2024.
All securities issued are subject to a hold period of four months and one day from the closing date in accordance with applicable securities laws.
Leadership insights
“We are extremely pleased to welcome the participation of Mr. Eric Sprott in this financing. His continued support is a strong endorsement of Guanajuato Silver’s vision and potential,” James Anderson, Guanajuato Silver’s chairman and chief executive officer, said in a statement. “This financing will provide us with the necessary capital to accelerate production in response to rapidly rising silver prices. We also intend to expand exploration activities at all four of our producing silver mines in Mexico while continuing our strategy of disciplined growth.”
About Guanajuato Silver
Guanajuato Silver is a precious metals producer reactivating past-producing silver and gold mines in Mexico. The company produces silver and gold concentrates from the El Cubo mine, Valenciana mines complex, and the San Ignacio mine, all three within the state of Guanajuato and contributing to its more than 480-year mining history. The company also produces silver, gold, lead and zinc concentrates from the Topia mine in northwestern Durango.
Guanajuato Silver stock (TSXV:GSVR) is up by 1.82 per cent, trading at C$0.28 per share as of 9:36 am ET. The stock has given back 9.68 per cent year-over-year, but remains up by 600 per cent since 2020.
Join the discussion: Find out what everybody’s saying about Eric Sprott’s investment in this Mexican gold and silver stock on the Guanajuato Silver Company Ltd. Bullboard and check out the rest of Stockhouse’s stock forums and message boards.
The material provided in this article is for information only and should not be treated as investment advice. For full disclaimer information, please click here.
(Top photo of Eric Sprott being inducted into the Canadian Mining Hall of Fame: @BlairMcBride on X)
