DENVER--(BUSINESS WIRE)--
Gatos Silver, Inc. (NYSE/TSX: GATO) (“Gatos Silver” or the “Company”) is pleased to announce its 70%-owned Los Gatos Joint Venture (“LGJV”) has repaid its Term Loan (“Term Loan”) effective July 26, 2021. Gatos Silver’s attributable portion of the Term Loan retirement and related costs was approximately $155.9 million.
Gatos Silver’s portion of the Term Loan retirement was funded with proceeds from the recently completed public offering, available cash on hand and $13 million borrowed under Gatos Silver’s Revolving Credit Facility. The Term Loan retirement greatly fortifies Gatos Silver’s balance sheet by eliminating significant annual interest, at least $31 million of annual principal payments and removing a requirement for approximately $50 million to be held as cash reserves under the Term Loan.
Stephen Orr, the Company’s Chief Executive Officer, stated: “The retirement of the LGJV Term Loan is a major milestone in Gatos Silver’s path of creating substantial shareholder value since the Company’s IPO in October 2020. With the Cerro Los Gatos (‘CLG’) mine and processing facility now operating above design capacity, record-breaking production was achieved in the second quarter. CLG is now generating strong cash flows to fund additional performance improvement initiatives and exploration at the Company’s vast and highly prospective property positions in Mexico.”
About Gatos Silver
Gatos Silver is a silver dominant exploration, development and production company that discovered a new silver and zinc-rich mineral district in southern Chihuahua State, Mexico. To-date, 14 zones of mineralization have been defined within the district and all are characterized by silver-zinc-lead epithermal mineralization. More than 85% of the approximately 103,087-hectare mineral rights package has yet to be drilled, representing a highly prospective and under-explored district. As a 70%-owner of the LGJV, the Company recently built and commissioned its first operating mine and mineral processing plant at the LGJV’s CLG deposit.
Forward-Looking Statements
This press release contains statements that constitute “forward-looking information” and “forward-looking statements” within the meaning of U.S. and Canadian securities laws. All statements other than statements of historical facts contained in this press release, including statements regarding the expected average annual production are forward-looking statements. Forward-looking statements are based on management’s beliefs and assumptions and on information currently available to management. Such statements are subject to risks and uncertainties, and actual results may differ materially from those expressed or implied in the forward-looking statements due to various factors described in our filings with the U.S. Securities and Exchange Commission and Canadian securities commissions. Certain forward-looking statements are based on assumptions, qualifications and procedures which are set out only in the technical report entitled “Los Gatos Project, Chihuahua, Mexico,” dated July, 2020 with an effective date of July 1, 2020 (the “Los Gatos Technical Report”) filed with the U.S. Securities and Exchange Commission and Canadian securities commissions. Scientific and technical disclosures in this press release were approved by Philip Pyle, Vice President of Exploration and Chief Geologist of Gatos Silver who is a “Qualified Person,” as defined in NI 43-101 Standards of Disclosure for Mineral Projects of the Canadian Securities Administrators. For a complete description of assumptions, qualifications and procedures associated with such information, reference should be made to the full text of the Los Gatos Technical Report. Gatos Silver expressly disclaims any obligation or undertaking to update the forward-looking statements contained in this press release to reflect any change in its expectations or any change in events, conditions, or circumstances on which such statements are based unless required to do so by applicable law. No assurance can be given that such future results will be achieved. Forward-looking statements speak only as of the date of this press release.
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Investors and Media Contact
Adam Dubas
Chief Administrative Officer
investors@gatossilver.com
(303) 784-5350
Source: Gatos Silver