Guanajuato Silver has completed its non-brokered private placement, raising C$18m ($12.9m) in gross proceeds.
The offering included 60 million units at C$0.30 each, with each unit comprising one common share and a half-warrant.
Holders of these warrants can buy additional shares at C$0.45 over the next three years, until 21 August 2028.
The net proceeds are earmarked for a variety of purposes including augmenting the company's underground mining fleet, enhancing production at its Guanajuato and Durango mines, and upgrading the Topia mine and mill complex.
Funds will also support corporate expenses and detailed exploration at the San Ignacio and Valenciana mineral properties.
Guanajuato Silver chairman and CEO James Anderson said: “With this strengthening of our balance sheet, Guanajuato Silver is now positioned to make significant upgrades to our underground mining fleet and to our three processing facilities, as we move to establish improved operational consistency at all four of our producing silver mines.
“Furthermore, current exploration and development drill programmes will be scaled up considerably as we move to expand our mineral resource base. We thank current and past investors for their continued support as we build Mexico's next mid-tier silver producer.”
The units were sold in compliance with Canadian securities laws, allowing immediate free trading, except for those sold in the US, which are subject to trade restrictions.
Medalist Capital and Research Capital were engaged as exclusive finders for the offering.
The finders received a cash commission of $520,463 and 1,727,904 non-transferable finder's warrants, each warrant enabling the purchase of one common share at the offering price until 21 August 2028.
Research Capital, as part of an advisory agreement, provided financial advisory services for the offering. In return, the company will pay a work fee of $136,500 and issue 458,500 advisor warrants, with the same terms as the finder's warrants, subject to a four-month hold period.
Furthermore, certain directors and officers of Guanajuato Silver, or their affiliates, participated in the offering, purchasing 2.1 million units and contributing $630,000 in gross proceeds.
These transactions are considered “related party transactions” but are exempt from formal valuation and minority shareholder approval requirements, as they do not exceed 25% of the company's market capitalisation.
