Guanajuato Silver (TSXV: GSVR) has made a second accelerated payment against its gold loan in as many months, clearing another tranche of the obligation while gold trades below recent highs.
The company repaid 1,448.7 ounces of gold to Ocean Partners UK Ltd. at a price of US$3,830 per ounce, leaning on softer spot prices and an early payment discount. The payment wipes out all 11 monthly installments that had been scheduled to resume in 2027. That leaves just one obligation outstanding, a bullet payment of 2,365.8 ounces of gold due when the loan matures in April 2028.
The move follows a similar step in May, when the company paid down 1,580.4 ounces, equivalent to a full year of installments, using cash on hand. That earlier repayment had settled its obligations through May 2027. Between the two payments, Guanajuato Silver has now returned roughly two-thirds of the loan’s original balance to its lender.
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“Following on the heels of last month’s accelerated debt repayment, we have again strengthened our balance sheet by taking advantage of the recent pull-back in the price of gold to substantially reduce our only outstanding debt obligation,” said James Anderson, chairman and chief executive officer.
The Ocean Partners facility is the only debt Guanajuato Silver currently carries, with a mark-to-market value of roughly US$10.2 million at current prices.
Guanajuato Silver last traded at $0.49 on the TSX Venture.
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