TSX: GPR | NYSE American: GPL
This news release constitutes a "designated news release" for
the purposes of the Company's prospectus supplement dated
October 15, 2021, to its short form
base shelf prospectus dated September 10,
2021.
VANCOUVER, BC, Aug. 4, 2022
/PRNewswire/ - Great Panther Mining Limited (TSX: GPR) (NYSE-A:
GPL) ("Great Panther" or the "Company") reports that it has closed
the previously announced sale of its Mexican subsidiary Minera
Mexicana El Rosario S.A. de C.V. ("MMR"), which owns the Guanajuato
Mine Complex (the "GMC"), the Topia mine, and the El Horcón and Santa Rosa projects, to Guanajuato Silver
Company Ltd. ("GSilver").
The consideration payable to the Company comprised:
- US$8,000,000 of cash, plus
additional cash of approximately US$1,350,000 pursuant to the working capital
adjustment described below
- 25,787,200 common shares of GSilver, valued at approximately
US$6,700,000 as of the announcement
of the transaction on June 29, 2022,
and US$8,921,172 as of the close of
business on August 4, 2022
- US$500,000, if at any time
following the closing date the GMC and Topia produce an aggregate of 2.5 million
ounces of silver
- US$750,000 if the price of silver
closes at or above US$27.50 per ounce
over a period of 30 consecutive trading days at any time within two
years of closing
- US$750,000 if the price of silver
closes at or above US$30.00 per ounce
over a period of 30 consecutive trading days at any time within
three years of closing
Fifty percent of the shares are subject to the statutory hold
period of four months, 25% are subject to an eight-month hold
period and the remaining 25% are subject to a 12-month hold period.
The US$1,350,000 working capital
adjustment described above is based on estimate of the difference
between MMR's working capital at closing and an agreed target level
of working capital. The final adjustment will be determined
post-closing.
Approximately US$3,450,000 of the
sale proceeds were used to repay all outstanding indebtedness
pursuant to a lead concentrate prepayment agreement between MMR,
the Company (as guarantor) and Samsung C&T U.K. Ltd.
("Samsung"), a wholly owned subsidiary of Samsung C&T
Corporation. Upon repayment of the Samsung indebtedness, Samsung
released its security interest in the MMR shares and GSilver
assumed all future obligations of the Company under the
agreement.
Upon completion of the transaction, the Company issued 171,153
common shares to its financial advisor at a deemed issue price of
US$1.30. The shares are subject to a
four month hold period under Canadian securities law that will
expire on December 5, 2022.
ABOUT GREAT PANTHER
Great Panther Mining is a precious metals producer focused on
the operation of the Tucano Gold Mine in Brazil where the Company controls a land
package covering nearly 200,000 hectares in the prospective Vila
Nova Greenstone belt. Great Panther's aim is to create long-term
stakeholder value through safe, sustainable production and reinvest
into exploration to tap into the potential of the Tucano Gold Mine
to replace resources, extend mine life and make new discoveries.
Great Panther trades on the Toronto Stock Exchange trading under
the symbol GPR and on the NYSE American under the symbol GPL.
CAUTIONARY STATEMENT ON FORWARD-LOOKING
INFORMATION
This news release contains forward-looking statements within the
meaning of the United States Private Securities Litigation Reform
Act of 1995 and forward-looking information within the meaning of
Canadian securities laws (together, "forward-looking statements").
Such forward-looking statements may include, but are not limited
to, (i) additional amounts payable by GSilver to MMR based on
future production or the price of silver and (ii) statements
regarding the Company's growth orientation and focus on creating
long-term stakeholder value through safe and sustainable production
and reinvesting into exploration.
These forward-looking statements and information reflect the
Company's current views with respect to future events and are
necessarily based upon a number of assumptions that, while
considered reasonable by the Company, are inherently subject to
significant operational, business, economic and regulatory risks
and uncertainties, including risks described in respect of Great
Panther in its most recent annual information form and management's
discussion and analysis filed with the Canadian Securities
Administrators and available at www.sedar.com and its most recent
annual report on Form 40-F and management's discussion and analysis
on Form 6-K filed with the Securities and Exchange Commission and
available at www.sec.gov.
There is no assurance that these forward-looking statements will
prove accurate or that actual results will not vary materially from
these forward-looking statements. Although the Company has
attempted to identify important factors that could cause actual
results to differ materially, there may be other factors that cause
results not to be as anticipated, estimated, described, or
intended. Accordingly, readers are cautioned not to place undue
reliance on forward looking statements. Forward-looking statements
and information are designed to help readers understand
management's current views of our near- and longer-term prospects
and may not be appropriate for other purposes. The Company does not
intend, nor does it assume any obligation to update or revise
forward-looking statements or information, whether as a result of
new information, changes in assumptions, future events or
otherwise, except to the extent required by applicable law.
View original content to download
multimedia:https://www.prnewswire.com/news-releases/great-panther-completes-sale-of-the-guanajuato-mine-complex-and-topia-mine-in-mexico-301600502.html
SOURCE Great Panther Mining Limited