TSX.V: SCZ
FSE: 1SZ
VANCOUVER, Aug. 10, 2017 /CNW/ - Santacruz Silver Mining
Ltd. (TSX.V:SCZ) ("Santacruz") announces, further
to its news release of August 8,
2017, that it has settled the outstanding balance owing on
certain of the claims included in the Gavilanes Project (the
"Gavilanes Outstanding Balance") by making a cash payment of
US$500,000 and issuing 1,250,000
common shares of Santacruz, plus applicable value added taxes
("VAT"), to the property vendor. The shares are subject to a hold
period and may not be traded until December
11, 2017 except as permitted by applicable securities
legislation and the rules and policies of the TSX Venture
Exchange.
Marlin Gold Mining Ltd. ("Marlin") provided US$580,000 as a refundable deposit (the
"Deposit") to fund the cash portion of the Gavilanes Outstanding
Balance in accordance with the terms of the definitive agreement
between Marlin, Santacruz and their respective subsidiaries (see
news release dated August 8, 2017).
Pursuant to such agreement, Marlin, through its wholly-owned
subsidiary, will acquire 100% of Santacruz's interest in the
Gavilanes Project in Durango,
Mexico (the "Gavilanes Transaction"), for total cash
consideration of US$3.5 million, plus
applicable VAT.
On closing of the Gavilanes Transaction, the Deposit will be
deducted from the purchase price otherwise payable by Marlin. The
Gavilanes Transaction is expected to close in August
2017.
Completion of the Gavilanes Transaction is conditional upon,
among other things, the approval of the TSX Venture Exchange, the
release of the security interest of JMET, LLC ("JMET") over the
Gavilanes Project and additional customary closing
conditions. Concurrently with completion of the Gavilanes
Transaction, Santacruz will use a portion of the proceeds therefrom
to settle the remaining outstanding debt owing to JMET.
About Santacruz Silver Mining Ltd.
Santacruz is a Mexican focused silver company with two producing
silver projects (Rosario Project, including the Rosario Mine, Cinco
Estrellas Property and Membrillo Vein, and the right to operate the
Veta Grande Project and milling facility); and two exploration
properties, the Minillas Property and Zacatecas properties. Santacruz is managed by
a technical team of professionals with proven track records in
developing, operating and discovering silver mines in Mexico with a corporate objective to become a
mid-tier silver producer.
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, including
information concerning the the payment to settle outstanding debt
owing to JMET, the closing of the Gavilanes Transaction and the
anticipated results of the Gavilanes Transaction constitute
"forward-looking information" as such term is used in applicable
Canadian securities laws. Forward-looking information includes, but
is not limited to, plans, expectations and estimates of management
at the date the information is provided and is subject to certain
factors and assumptions. In making the forward-looking
statements included in this news release, Santacruz has applied
several material assumptions, including, but not limited to, the
assumptions that regulatory approval will be obtained; satisfaction
of all conditions precedent for the completion of the Gavilanes
Transaction in a timely manner; Santacruz's financial condition and
development plans do not change as a result of unforeseen events;
and that future metal prices and the demand and market outlook for
metals will remain stable or improve. 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 that any of the
assumptions referred to prove not to be valid or reliable; delays
in regulatory approval, receipt of third party consents and/or
satisfaction of conditions precedent to completion of the Gavilanes
Transaction, as well as the other risks and uncertainties
applicable to mineral exploration and development activities and to
each company as set forth in Santacruz and Marlin's respective
continuous disclosure filings filed under their respective profiles
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. Santacruz undertakes no obligation to update
forward-looking information or statements, other than as required
by applicable law.
SOURCE SantaCruz Silver Mining Ltd.