James Anderson, Chairman & CEO of Guanajuato Silver (TSX.V:GSVR – OTCQX:GSVRF), joins me to highlight their recently closed transformational acquisition of the Bolanitos Gold-Silver Mine from Endeavour Silver, and how this augments the current production profile of the company, as well as synergies with processing and improving efficiencies.

Bolanitos is the Company’s fifth producing precious metals mine in Mexico. Located adjacent to Guanajuato Silver’s San Ignacio mine, the 1,600 tonnes per day Bolanitos flotation plant is currently under-utilized and has significant capacity for increased throughput and production. Bolanitos is a gold mine and silver mine which will further enhance the Company’s position as a growing precious metals producer in Mexico. In total, the Company will operate three primary silver mines (Topia, Valenciana, and El Cubo) and two primary gold mines (Bolanitos and San Ignacio).

Guanajuato Silver has acquired Bolanitos for total consideration of up to US$50 million (the “Transaction”), consisting of (i) upfront consideration of US$40 million which was paid on closing and was comprised of US$30 million in cash and US$10 million of Guanajuato Silver common at a deemed price of US$0.2709413 (Cdn$0.3815) per share. and (ii) contingent consideration of US$10 million ((ii) In addition to the Upfront Consideration, Guanajuato Silver will make two contingent payments to Endeavour, each being US$5 million, upon achieving production of two million ounces of silver-equivalent and four million ounces of silver-equivalent, respectively. Each Contingent Payment will be satisfied 50% in cash and 50% in Guanajuato Shares.

We discussed how the incorporation of the San Ignacio Mine into the Bolanitos Mines Complex is expected to rapidly generate improved economics and expanded mine life. Mineralized material mined at San Ignacio will now be transported to the nearby 1,600 tonnes per day Bolanitos flotation plant; as Bolanitos and San Ignacio are contiguous to one another, this is expected to dramatically reduce transportation costs and increase utilization at the Bolanitos mill. This has allowed the Company to put the Cata processing plant on care and maintenance, with the goal to have over 85% utilization at the Bolanitos and El Cubo plants in 2026.

Another aspect of this deal also includes the acquisition of the historic Cebada mine, which is located contiguous and to the north of the Company’s Valenciana Mines Complex (VMC). The Company intends to reactivate Cebada, which is currently on care and maintenance, as an important exploration and development project. This led to us highlighting the other historically producing mines in the portfolio like Pinguico and El Horco, that will have an exploration and development work on tap in 2026, focusing on the future growth of the Company.  The plan is for 44,000 meters of exploration drilling to be completed across all projects this year.

If you have any follow up questions for James on Guanajuato Silver, then please email them into me at Shad@kereport.com.

• In full disclosure, Shad is a shareholder of Guanajuato Silver at the time of this recording, and may choose to buy or sell shares at any time.

For more market commentary & interview summaries, subscribe to our Substacks:

The KE Report: https://kereport.substack.com/

Shad’s resource market commentary: https://excelsiorprosperity.substack.com/

Investment disclaimer:

This content is for informational and educational purposes only and does not constitute investment advice, an offer, or a solicitation to buy or sell any security. Investing in equities and commodities involves risk, including the possible loss of principal. Do your own research and consult a licensed financial advisor before making any investment decisions. Guests and hosts may own shares in companies mentioned.

Click here to follow the latest news from Guanajuato Silver