Gatos Silver Inc. (GATO) Prices 21.43M Share IPO at $7/Sh

Gatos Silver, Inc. (NYSE: GATO), a U.S.-based precious metals production, development and exploration company that is expected to own 70% of a new silver and zinc mineral district (“Los Gatos District”) in Chihuahua state, Mexico, following the consummation of its initial public offering, announced today the pricing of its initial public offering of 21,430,000 shares of its common stock at a price of US$7.00 per share. The gross proceeds from the offering are expected to be approximately US$150 million, before deducting underwriting discounts and commissions and estimated offering expenses payable by Gatos Silver. In addition, Gatos Silver has granted the underwriters a 30-day option to purchase up to an additional 3,214,500 shares of common stock at the initial public offering price, less underwriting discounts and commissions.

The shares are expected to begin trading on the New York Stock Exchange and the Toronto Stock Exchange on October 28, 2020 on an if, as and when issued basis under the ticker symbol “GATO”. The offering is expected to close on October 30, 2020, subject to customary closing conditions.

Gatos Silver intends to use the net proceeds from the 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.

BMO Capital Markets, Goldman Sachs & Co. LLC and RBC Capital Markets are acting as joint lead bookrunners and as representatives of the underwriters for the offering. Canaccord Genuity Corp. and CIBC Capital Markets are acting as co-managers for the offering.

The offering is being made only by means of a prospectus.

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