DENVER–(BUSINESS WIRE)–Gatos Silver, Inc. (“Gatos Silver” or the “Company”) is pleased to provide the following information after the completion of its initial public offering and commencement of trading of its common stock on the New York Stock Exchange and the Toronto Stock Exchange under the ticker symbol “GATO.”
About Gatos Silver
Headquartered in Denver, Colorado, Gatos Silver is a precious metals production, development and exploration company. The Company is currently focused on the production and continued development of the Cerro Los Gatos Mine and the further exploration and development of the Los Gatos District, both located in Chihuahua, Mexico within one of the world’s premier silver mining regions, the Mexico Silver Belt.
The Cerro Los Gatos Mine is Gatos Silver’s first commercially producing mine in the Los Gatos District. It commenced production in September 2019 and is ramping up to its 2,500 tonnes per day design capacity, which the Company believes will be reached in January 2021. The Cerro Los Gatos Mine is expected to produce, on average, 12.2 million payable silver equivalent (“AgEq”) ounces (100% basis) annually through the existing mine life, at a life-of-mine all-in sustaining cost (“AISC”) of $11.77 per AgEq ounce, an attractive, low-cost AISC profile.
Gatos Silver’s predecessor company acquired 103,087 contiguous hectares of mineral concessions. The initial discovery was made in 2008 at the Cerro Los Gatos zone and over the ensuing years, another 13 separate zones of mineralization were discovered, establishing Los Gatos as a new mineral district. To date, the Los Gatos District consists of 14 mineralized zones, which include three identified silver-lead-zinc deposits that contain mineral resources—the Cerro Los Gatos Mine, the Esther deposit and the Amapola deposit—as well as 11 additional high-priority targets defined by high-grade drill intersections and over 150 kilometers of outcropping quartz and calcite veins. The area is characterized by predominant silver-lead-zinc epithermal mineralization. More than 85% of the 103,087 hectare land position has yet to be drilled, creating a highly prospective and underexplored district.
The Los Gatos District, including the Cerro Los Gatos Mine, is owned by the Los Gatos Joint Venture (the “LGJV”), which Gatos Silver formed with Dowa Metals & Mining Ltd., Inc. (“Dowa”) in 2015. Gatos Silver has a 51.5% interest in the LGJV and has an option to purchase another 18.5% interest, which it intends to exercise using the net proceeds from its initial public offering. Through financing from Dowa and equity contributions from Gatos Silver and Dowa, the Cerro Los Gatos Mine and processing facility was constructed and initially commissioned in July 2019.
The Company intends to use the net proceeds from its initial public offering to:
- increase Gatos Silver’s ownership in the Los Gatos District to 70%;
- explore and define further mineral resources within the 103,000 hectares of mineral concessions in the Los Gatos District;
- fund a future production expansion study at Cerro Los Gatos;
- fund near-term debt service needs;
- retire high-cost debt; and
- fund general corporate purposes.
Gatos Silver’s objective is to become a high-grade, low cost premier silver producer by expanding its production at the Cerro Los Gatos Mine and organically growing its resource base and production rate through continued definition and exploration drilling in the Los Gatos District.
Precious Metals Summit Europe
Gatos Silver will be virtually presenting at the Precious Metals Summit Europe on November 3 at 10:30am EST.
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 use of proceeds from the offering and 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…