GATOS SILVER FINALIZES AGREEMENT TO INCREASE LOS GATOS JV OWNERSHIP TO 70% AND EXTINGUISH THE LGJV WORKING CAPITAL FACILITY

Gatos 09032021

DENVER–(BUSINESS WIRE)– Gatos Silver, Inc. (NYSE/TSX: GATO) (“Gatos Silver” or the “Company”) is pleased to announce it has reached a definitive agreement with Dowa Metals & Mining Co., Ltd. (“Dowa”) to:

  1. Exercise its right to repurchase an additional 18.5% (“Repurchase”) of the Los Gatos Joint Venture (“LGJV”). As a result of the Repurchase, Gatos Silver’s LGJV interest will increase from 51.5% to 70%, and
  2. Extinguish the LGJV’s $60 million working capital facility (“WCF”). Gatos Silver’s attributable portion of the WCF is $42 million.

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