Guanajuato Silver Company (TSXV: GSVR) announced on Tuesday that it has arranged a private placement of about 33.3 million units priced at 24¢ each for proceeds of $8 million. Anchoring the financing is Canadian mining billionaire Eric Sprott, who will purchase $3 million of the units.
Shares of Guanajuato Silver gained 1.8% to 28¢ apiece following the Sprott investment. This gives the Mexico-focused precious metals miner a market capitalization of around $115 million.
“We are extremely pleased to welcome the participation of Eric Sprott in this financing. His continued support is a strong endorsement of Guanajuato Silver’s vision and potential,” James Anderson, Guanajuato Silver chair and CEO said in a release.
He added that this financing will provide the company with necessary capital to accelerate production in response to rapidly rising silver prices. This week the price of silver surged to its highest in 12 years, and on Tuesday was at US$34.55 an ounce.
Guanajuato Silver currently operates four mines: the El Cubo, Valenciana mines complex and San Ignacio in Guanajuato, and the Topia mine in northwestern Durango. Last year, the company saw its highest ever production in silver-equivalent terms at 3.5 million oz., a 64% increase over 2022.
Due to rising precious metals prices, the miner is coming off its best revenue-generating quarter, recording US$20.5 million for the second quarter, a 22% improvement over the same period of 2023.
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