- Guanajuato Silver (GSVR) has issued equity to settle outstanding debt
- It issued 2,468,750 common shares priced at C$0.40 to settle accounts payable and accrued liabilities of $987,000
- The transactions improve the company’s working capital position as it seeks to return to full production
- Guanajuato Silver is reactivating past-producing silver and gold mines near Guanajuato, Mexico
- Guanajuato Silver (GSVR) is down by 6.82 per cent trading at $0.41 per share
Guanajuato Silver (GSVR) has issued equity to settle outstanding debt.
The company issued 2,468,750 common shares priced at C$0.40 to settle accounts payable and accrued liabilities of $987,000.
A private company controlled by Director Hernan Dorado will receive 656,250 shares to repay $262,500 relating to GSVR’s agreement to purchase certain royalties underlying its Pinguico Mine.
MGA Contratista Minera, the company’s primary mine contractor at the El Cubo Mine, will receive 1,712,500 shares to settle outstanding payables of $685,000.
The company also issued 37,500 shares to President Ramon Davila in partial settlement of funds owed under his employment agreement.
“The settlement of these outstanding payments for shares is very helpful for GSilver’s working capital position as we move to bring all our mining assets back to full production,” stated James Anderson, Guanajuato’s Chairman and CEO.
“Furthermore,” he added, “this debt settlement demonstrates a major vote of confidence on the part of these key members of management and our main mine contractor, who clearly see value in being shareholders of the company.”
Guanajuato Silver is reactivating past-producing silver and gold mines near Guanajuato, Mexico. Its assets include five mines and three processing facilities.
Guanajuato Silver (GSVR) is down by 6.82 per cent trading at $0.41 per share as of 10:33 am EST.