OCIM provides a US$7.5m financing for VanGold’s Refurbishment of El Cubo Project in Guanajuato, Mexico
Ocim Precious Metals SA (“OCIM”) is pleased to announce that it has signed a definitive agreement with VanGold Mining (TSX-V:VGLD - OTCQX:VGLDF) (“VanGold”) to provide a US$ 7.5m alternative financing in the form of a Silver and Gold Loan.
Listed on the Toronto stock exchange, VanGold specialises in reactivating past producing silver and gold mines in the region of Guanajuato, in central Mexico. The company, which plans to resume production at El Pinguico in the fourth quarter of 2021, has closed on its acquisition of the El Cubo complex from Endeavour Silver Corp (NYSE: EXK ; TSX-V: EDR). The El Cubo complex sits on a site actively mined since the 17th century and comprises a gold and silver mine as well as an ore processing plant, both situated just 8 kilometres from El Puinguico.
OCIM has provided VanGold with a non-dilutive Loan Facility in the form of a US$7.5m prepayment of silver and gold bullion. The loan is for an 18-month term, including an initial six-month payment-free grace period, and is then repayable over a 12-month period by VanGold delivering a fixed number of silver and gold ounces on a monthly basis. The number of silver and gold ounces will be fixed at a discount to the spot price on the day VanGold draws down the funds, within 90 days of signing of the agreement.
In a first refurbishment phase, VanGold will reactivate El Cubo’s ore treatment facility with a capacity of around 750 tonnes per day using ore from its El Pinguico mine, as the remainder of the site is readied to fully resume activities. This acquisition, which VanGold’s Director, Daniel J. Oliver describes as “transformational,” aims to leverage the significant potential synergies of the two neighbouring sites to create a new major player for precious metals production in the historic mining region of Guanajuato.
“We are proud that, via this transaction, we participate in reviving this emblematic vein of the “Veta Madre”, the silver mother lode discovered in Guanajuato in 1540, which saw Mexico become the source of about 20% of global silver production in the 18th century,” explains Laurent Mathiot, CEO of OCIM.
VanGold Mining is an exploration and development company engaged in reactivating past producing silver and gold mines near the city of Guanajuato, Mexico. The Company's El Cubo and El Pinguico projects are significant past producers of both silver and gold located in close proximity to Guanajuato city, and to each other. The Company is currently focused on refurbishing the El Cubo mill and commencing production from the combined El Cubo / El Pinguico operation, as well as delineating additional silver and gold resources through underground and surface drilling on its projects located in this 480-year-old mining camp.
To learn more about VanGold Mining, visit www.vangoldmining.com