Guanajuato Silver Co. Ltd.

Guanajuato Silver Co. Ltd. is a junior silver producer headquartered in Vancouver, Canada, operating primarily in Mexico. The company's portfolio consists of 4 operating mines. Key assets include El Cubo-Villalpando. The enterprise's business model centers on acquiring and reactivating past-producing mining assets. This integrated approach involves refurbishing existing processing infrastructure to handle material from multiple sites, creating operational synergies. The organization operates several processing plants featuring conventional flotation, gravity treatment, and concentrate filtration circuits, enabling the treatment of diverse material types. A key aspect of its operational flexibility is the capacity to process both proprietary and third-party mineralized material, as evidenced by a processing agreement with a local miner to handle inventory from a past-producing project. All concentrate products are sold through comprehensive offtake agreements with an established international metals trader. The company's production decisions are not predicated on feasibility studies of mineral reserves, which introduces a higher degree of uncertainty and risk compared to industry peers who follow a reserve-based development model. This strategy positions the entity in a competitive landscape where it contends with larger, more established firms for acquisitions, skilled personnel, and capital.

Strategic focus is on increasing production from existing operations and expanding the resource base through targeted exploration and development. Operational optimization is a core priority, pursued through initiatives such as installing new filter systems to enhance recovery rates and commissioning intelligent mineral sorting systems to improve the grade of transported material. Growth is also driven by a disciplined acquisition strategy focused on past-producing assets. Capital allocation from recent financings is directed toward expanding the underground equipment fleet, modernizing processing facilities, and funding brownfield exploration programs, particularly at recently restarted sites. The financial management approach involves a blend of equity and debt instruments, including prepaid forward sales agreements, credit facilities, and at-the-market equity programs, to secure working capital and fund capital expenditures. A key objective is the conversion of historical mineral resource estimates into current resources through systematic underground and surface drilling campaigns to delineate additional mineralization and extend the operational life of its assets.

Executive leadership includes a Chief Executive Officer with prior CEO experience at a publicly traded resource company, a Chief Financial Officer who is a Chartered Professional Accountant with over 25 years of experience in the natural resources sector, and a Chief Operating Officer with more than 35 years of experience managing mining operations. The Board of Directors is composed of 5 members and maintains oversight through 3 specialized committees: an Audit Committee, a Corporate Governance and Compensation Committee, and a Health and Safety Committee. The Audit Committee consists of 3 directors, all of whom are considered independent and financially literate, and operates under a formal charter. Governance practices acknowledge that directors and officers may serve on other corporate boards, with potential conflicts of interest managed in accordance with the Business Corporations Act and the company's Code of Ethics. The board's structure is designed to provide robust oversight of financial reporting, executive compensation, and operational safety standards across the organization.

The organization's sustainability programs are designed for the long-term benefit of stakeholders and society. Environmental stewardship includes compliance with all governing regulations and maintaining a significant provision for future reclamation and remediation obligations, which stood at $17,621,567 as of year-end 2024. This covers land rehabilitation, decommissioning of facilities, and ongoing care. Social initiatives prioritize local communities, with a focus on supporting health programs, educational scholarships, job skills training, and infrastructure improvements like road maintenance. The company actively promotes local hiring, with a significant portion of its workforce sourced from surrounding communities. It has been recognized for its work with local family development agencies on public health and safety initiatives, earning a "Planet Youth Badge" from the state's Ministry of Health. The enterprise also maintains robust safety programs and adheres to anti-corruption and anti-bribery laws in its operating jurisdictions.

The corporate structure is centered around 2 primary operating subsidiaries, OMPSA and Minera Mexicana El Rosario S.A. de C.V. (MMR), which hold the company's material assets. The current operational footprint was significantly shaped by 2 key transactions: the acquisition of assets from Endeavour Silver Corp. in April 2021 and the purchase of the entire MMR subsidiary from Great Panther Mining Limited in August 2022. A notable investor is an entity beneficially owned and controlled by Mr. Eric Sprott, which provided a C$3,000,000 anchor order in a private placement completed in October 2024. The company's revenue generation is structurally defined by long-term offtake agreements with Ocean Partners and its affiliate, MK Metal Trading Mexico, S.A. de C.V., covering 100% of the concentrate produced from its operations. These agreements are integral to the business model, providing a dedicated buyer for all output. The organization also holds several exploration concessions through another subsidiary, Canmex Silver, S.A. de C.V., which are not considered material to current operations.