TSX.V: SCZ
FSE: 1SZ
VANCOUVER, Feb. 28, 2017 /CNW/ - Santacruz Silver Mining
Ltd. (TSX.V:SCZ) ("Santacruz") announces that its
subsidiary, Impulsora Minera Santacruz S.A. de C.V. ("Impulsora"),
has renegotiated the terms of its agreement with Minera Hochschild
Mexico S.A. de C.V. ("MHM" or "Hochschild") regarding the
acquisition of a 100% interest in the San
Felipe property and adjacent El Gachi property located near
Hermosillo, Sonora, Mexico.
Under the terms of the prior agreement (see news release dated
June 16, 2015) Impulsora had the
right to acquire 100% of the San
Felipe property and the El Gachi property, including all
assets related to the properties, by making staged payments
totaling US$19,000,000.
Under the amended terms of the agreement with MHM, the above
payments will be restructured as follows:
To acquire the San Felipe Property:
- US$2,000,000 payable on or before
March 3, 2017; and
- US$8,000,000 payable on or before
December 15, 2017,
plus applicable value added taxes.
To acquire the El Gachi Property:
- US$500,000 payable on or before
March 31, 2017,
plus applicable value added taxes.
In addition, pursuant to the amended terms of the agreement with
MHM, upon completion of the respective scheduled payments, plus
applicable value added taxes, the Company will have acquired each
of the properties free of all underlying net smelter return
royalties.
In consideration for the restructured payment terms above
pursuant to the amended acquisition agreement, Santacruz has agreed
to issue 13,415,000 common shares to MHM, subject to TSX Venture
Exchange approval.
About Santacruz Silver Mining Ltd.
Santacruz is a Mexican focused silver company with two producing
silver projects (Rosario,
including the Cinco Estrellas property, and the right to operate
the Veta Grande silver project and
milling facility); an advanced-stage development project
(San Felipe); and three
exploration properties including the Gavilanes property, Minillas property and Zacatecas properties. The Company is managed
by a technical team of professionals with proven track records in
developing, operating and discovering silver mines in Mexico. Our corporate objective is to become a
mid-tier silver producer.
'signed'
Arturo Préstamo Elizondo
President, Chief Executive Officer and Director
Neither the TSX Venture Exchange nor its Regulation Services
Provider (as that term is defined in the policies of the TSX
Venture Exchange) accepts responsibility for the adequacy or
accuracy of this release.
Forward looking information
Certain statements contained in this news release, such as
the issuance of common shares to MHM, constitute "forward-looking
information" as such term is used in applicable Canadian securities
laws. Forward-looking information is based on plans, expectations
and estimates of management at the date the information is provided
and is subject to certain factors and assumptions, including, that
all required approvals will be received in a timely
manner. Forward-looking information is subject to a variety of
risks and uncertainties and other factors that could cause plans,
estimates and actual results to vary materially from those
projected in such forward-looking information. Factors that
could cause the forward-looking information in this news release to
change or to be inaccurate include, but are not limited to, the
risk of unforeseen delays in regulatory approval as well as the
other risks and uncertainties applicable to mineral exploration and
development activities and to the Company as set forth in the
Company's continuous disclosure filings filed under the Company's
profile at www.sedar.com. There can be no assurance that any
forward-looking information will prove to be accurate, as actual
results and future events could differ materially from those
anticipated in such statements. Accordingly, the reader should not
place any undue reliance on forward-looking information or
statements. The Company undertakes no obligation to update
forward-looking information or statements, other than as required
by applicable law.
Rosario Project
The decision to commence production at the Rosario Project
was not based on a feasibility study of mineral reserves
demonstrating economic and technical viability, but rather on a
more preliminary estimate of inferred mineral resources.
Accordingly, there is increased uncertainty and economic and
technical risks of failure associated with this production
decision. Production and economic variables may vary considerably,
due to the absence of a complete and detailed site analysis
according to and in accordance with NI 43-101.
Veta Grande Project
The decision to commence production at the Veta Grande
Project was not based on a feasibility study on mineral reserves
demonstrating economic and technical viability. Accordingly,
there is increased uncertainty and economic and technical risks of
failure associated with this production decision. Production
and economic variables may vary considerably due to the absence of
a complete and detailed site analysis according to and in
accordance with NI 43-101.
Cinco Estrellas Property
The decision to commence production at the Cinco Estrellas
Property was not based on a feasibility study on mineral reserves
demonstrating economic and technical viability. Accordingly, there
is increased uncertainty and economic and technical risks of
failure associated with this production decision. Production
and economic variables may vary considerably due to the absence of
a complete and detailed site analysis according to and in
accordance with NI 43-101.
SOURCE SantaCruz Silver Mining Ltd.