June 1, 2023
Silver X Mining Announces the Appointment of New Chief Operating Officer and Bolstered Operational Focus for 2023
Vancouver, BC, June 1, 2023 – Silver X Mining Corp. (TSX-V: AGX) (OTCQB: AGXPF) (F: AGX) (“Silver X” or the “Company”) is pleased to announce the appointment of Enrique Garay, P.Geo., as Chief Operating Officer (“COO”) effective June 1, 2023.
The appointment of a new COO is part of the Company’s commitment to operational improvement and its overarching strategy to ensure its growth potential at the Nueva Recuperada Project (the “Project”) in Peru. Mr. Garay is a seasoned senior exploration and mine geologist with almost 30 years of experience in maximizing the potential of operating assets and bringing new mines into production in the Americas. Throughout his career, he was a key member in the evaluation, acquisition, development, construction, commissioning and operation of three gold mines: Pierina, La Arena and Shahuindo, all in Peru. Mr. Garay served as Senior Vice President, Geology, for Rio2 Limited from 2018 to 2022, monitoring $100 million CapEx and $10 million OpEx budgets with exploration teams based in Peru and Chile. Prior to joining Rio2 Limited, Mr. Garay was Corporate Manager, Geology and Exploration, for Nexa Resources in Peru, supervising the Cerro Lindo mine, Peru’s largest underground polymetallic mine, and El Porvenir and Atacocha mines and Nexa’s exploration program in Peru. Mr. Garay has also held positions with Rio Alto Mining Limited, Consorcio Minero Horizonte, Hochschild Mining PLC, and Minera Barrick Misquichilca S.A. Mr. Garay holds a degree in Geological Engineering from the National University of Engineering, Lima, Peru, a Master of Science, Mineral Economic degree from Queen’s University, Canada, and is a Professional Geoscientist in British Columbia. As part of his appointment as COO, Mr. Garay will also become the Qualified Person (QP), as such term is defined in National Instrument 43-101 – Standards of Disclosure for Mineral Projects, for Silver X.
“I am very excited to have Enrique join our team, one of the leading mining professionals in Peru” stated José M. García, President & CEO of Silver X. “This appointment is a key step forward in Silver X’s strategy to establish itself as an intermediate silver producer in the Americas. Enrique brings unparalleled experience in the management and growth of operating mining companies. Enrique’s focus will be on building a sustainable and profitable operation, bringing our costs in line with our performance in the third quarter of 2022, and demonstrating the growth potential of our Project.”
As ramp up to nameplate capacity at the Nueva Recuperada mill continues, the Company has focused its resources on the development of the Tangana Mining Unit with record performance in terms of development and mine preparation as well as accessing higher grade areas. In addition, among other measures, the Company has reduced headcount and engaged contractors to carry out most of its operations making changes to the management team and appointing Carlos Trillo Medrano as General Manager of Operations. These adjustments are expected to deliver more sustainable levels of production in future quarters while improving effectiveness and reducing costs.
RSU and Options Grant
The Company also announces it has awarded of 70,000 restricted share units of the Company (“RSUs”) pursuant to the Company’s Restricted Share Unit Plan to an officer of the Company. The RSUs have a term of one year and vest as to 50% on the date that is six months from the date of grant and as to the other 50% on the date that is 12 months following the date of the grant. Additionally, the Company announces that it has granted 250,000 stock options (the “Options”) to purchase common shares of the Company pursuant to the Company’s Stock Option Plan to an officer of the Company. The Options are exercisable to purchase common shares of the Company at an exercise price of $0.29 per common share for a period of five years expiring on June 1, 2028, and vest as to 30% immediately upon grant, as to 35% on the date that is six months following the date of grant and as to the final 35% on the date that is 12 months following the grant.
Non-Brokered Private Placement
Further to the Company’s announcement on May 17, 2023, of its intention to complete a non-brokered private placement (the “Financing”), the Company has amended the terms of the warrants forming part of the units of the Company that are expected to be issued under the Financing to remove the acceleration clause.
About Silver X
Silver X is a growing silver producer building a multi-asset precious metals platform in Peru. The Company’s portfolio includes the Nueva Recuperada Project, a district-scale land package of over 20,000 hectares with two mining units and more than 200 exploration targets, as well as the recently acquired Pampas Project.
With existing production, scalable expansion opportunities, and significant exploration upside, Silver X is positioned for continued growth and long-term value creation. For more information visit our website at www.silverxmining.com.
On Behalf of the Board
José M. García
CEO and Director
For further information, please contact:
Simon Willcocks
Investor Relations
NON-IFRS MEASURES
The Company has included certain non-IFRS financial measures and ratios in this news release, as discussed below. The Company believes that these measures, in addition to measures prepared in accordance with IFRS, provide investors an improved ability to evaluate the underlying performance of the Company. The non-IFRS measures and ratios are intended to provide additional information and should not be considered in isolation or as a substitute for measures of performance prepared in accordance with IFRS. These financial measures and ratios do not have any standardized meaning prescribed under IFRS and therefore may not be comparable to other issuers.
EBITDA and Adjusted EBITDA
“EBITDA” is comprised as income (loss) less interest, income tax and depreciation and amortization. Management believes that EBITDA is a useful indicator for investors, and is used by management, in evaluating the operating performance of the Company. See “Reconciliation of Net (Loss) / Income to Adjusted EBITDA” for a quantitative reconciliation of EBITDA to the most directly comparable financial measure.
“Adjusted EBITDA” is comprised as income (loss) less interest, income tax, depreciation, amortization, share-based compensation, foreign exchange gain (loss), and certain non‑recurring or non‑cash items where applicable. Management believes that Adjusted EBITDA is a useful indicator for investors, and is used by management, in evaluating the operating performance of the Company. See “Reconciliation of Net (Loss) / Income to Adjusted EBITDA” for a quantitative reconciliation of Adjusted EBITDA to the most directly comparable financial measure.
Cash Costs and All-In Sustaining Cost (“AISC”)
The Company uses cash costs, cash costs per AgEq ounce produced, AISC, and AISC per AgEq ounce produced to manage and evaluate its operating performance in addition to IFRS measure because Company believes that conventional measures of performance prepared in accordance with IFRS do not fully illustrate the ability of its operations to generate cash flows. The Company understands that certain investors use these measures to determine the Company’s ability to generate earnings and cash flows for use in investing and other activities. Management and certain investors also use this information to evaluate the Company’s performance relative to peers who present this measure on a similar basis.
Cash costs are calculated by starting with cost of sales, and then adding treatment and refining charges, and changes in depreciation and amortization. Total cash production costs include cost of sales, changes in ore and concentrate inventories, changes in depreciation and amortization, less transportation and other selling costs and royalties. Cash costs per AgEq ounce is calculated by dividing cash costs by the AgEq ounces produced.
AISC and AISC per AgEq ounce produced are calculated based on guidance published by the World Gold Council (and used as a standard of the Silver Institute). The Company presents AISC based on AgEq ounces produced. AISC is calculated by taking the cash costs and adding sustaining costs. Sustaining costs are defined as capital expenditures and other expenditures that are necessary to maintain current production. Management has exercised judgment in making this determination.
The following table shows the calculation of the cash costs and AISC per AgEq ounces produced and per metric tonne processed:
Cautionary Note Regarding Production without Mineral Reserves
The decision to commence production at the Nueva Recuperada Project and the Company’s ongoing mining operations as referenced herein (the “Production Decision and Operations”) are based on economic models prepared by the Company in conjunction with management’s knowledge of the property and the existing estimate of mineral resources on the property. The Production Decision and Operations are not based on a preliminary economic assessment, a pre-feasibility study or a feasibility study of mineral reserves demonstrating economic and technical viability. Accordingly, there is increased uncertainty and economic and technical risks of failure associated with the Production Decision and Operations, in particular: the risk that mineral grades will be lower than expected; the risk that additional construction or ongoing mining operations are more difficult or more expensive than expected; and production and economic variables may vary considerably, due to the absence of a detailed economic and technical analysis in accordance with NI 43-101.
Cautionary Statement Regarding “Forward-Looking” Information
This press release contains forward-looking information within the meaning of applicable Canadian securities legislation (“forward-looking information”). Forward-looking information is generally identified by words such as “plans”, “expects”, “estimates”, “intends”, “anticipates”, “believes”, or similar expressions, including statements that certain events or results “may”, “could”, “would” or “will” occur. All statements other than historical facts constitute forward-looking information, including, without limitation, statements regarding exploration plans, operating results, expected project performance, the potential for resource expansion at Tangana, the economic viability of the Tangana Mining Unit, and the Company’s expected financial performance.
Forward-looking information is based on a number of assumptions, including that general economic and business conditions will not materially worsen; commodity demand and prices will remain stable or improve; required permits and approvals will be obtained on a timely basis; operations will not be materially disrupted by accidents, labour issues or equipment failures; financing will be available; equipment and supplies will be accessible as needed; resource estimates and underlying assumptions (including size, grade and recovery) are reasonable; and the Company will be able to attract and retain qualified personnel and execute its strategic objectives.
Forward-looking information is subject to known and unknown risks, uncertainties and other factors that may cause the actual results, level of activity, performance or achievements of the Company, as the case may be, to be materially different from those expressed or implied by such forward-looking information, including but not limited to those risks described in the Company’s annual and interim MD&As and in its public documents filed on www.sedarplus.ca from time to time. Forward- looking statements are based on the opinions and estimates of management as of the date such statements are made. Although the Company has attempted to identify important factors that could cause actual results to differ materially from those contained in forward-looking information, there may be other factors that cause results not to be as anticipated, estimated or intended. There can be no assurance that such information will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Accordingly, readers should not place undue reliance on forward- looking information. The Company does not undertake to update any forward-looking information, except in accordance with applicable securities laws.
Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
