TSX.V: SCZ
VANCOUVER,
Sept. 4, 2014
/PRNewswire/ - Santacruz Silver Mining Ltd. ("Santacruz" or the
"Company") (TSX.V:SCZ) is pleased to announce that its
subsidiary, Impulsora Minera Santacruz S.A. de C.V. ("Impulsora"),
has successfully renegotiated terms of its agreement to acquire a
100% interest in the San Felipe
project and adjacent El Gachi property located near Hermosillo, Sonora, Mexico with Minera
Hochschild Mexico S.A. de C.V. ("MHM" or "Hochschild").
Terms of the initial agreement with MHM dated August 3, 2011, as amended (see the Company's
press releases October 9, 2012 and
also August 14, 2013), included
upcoming payments of US$5,000,000 on
or before October 31, 2014 and an
additional payment of US$16,000,000
on or before October 31, 2015 to
acquire the San Felipe property
and the El Gachi property and related milling equipment, buildings,
land, and water rights as the main assets.
Under the terms of this newly amended agreement ("the Amending
Agreement"), Impulsora can acquire 100% of the San Felipe project and the El Gachi property,
including all assets related to the properties, by making the
following payments:
a. US$2,000,000 on or before December 1, 2014;
b. US$5,000,000 on or before December 1, 2015;
c. US$14,000,000 on or before December 15, 2016; and
Pursuant to the Amending Agreement, in the event that the
Company completes an equity offering of its securities in 2015, MHM
is entitled to 30% of the net proceeds of the offering to a
maximum of US$4,000,000, plus
the US$5,000,000 referred to above.
Any funds paid to MHM in excess of the US$5,000,000 would be applied against the
outstanding balance of the December
2016 payment.
President Arturo Préstamo stated,
"The terms of the Amending Agreement with Hochschild will provide
the Company with added flexibility moving forward. With the
imminent arrival of the San Felipe Project PEA and the continued
improvement of operations at the Rosario Mine, the Company is
building the necessary foundation to firmly establish itself as a
mid-tier silver producer. The business relationship with Hochschild
has been very beneficial to our Company and we greatly appreciate
their willingness to cooperate with us as we execute our business
plan."
About Santacruz Silver Mining Ltd.
Santacruz is a Mexican focused silver company with a producing
mine (Rosario); two advanced-stage
projects (San Felipe and
Gavilanes) and an early-stage
exploration project (El Gachi). 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
planned production levels, grades, mine and mill development, mill
recovery rates and the acquisition of mineralized material from
third parties, 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 the
Company's financial condition and development plans do not change
as a result of unforeseen events, that the Company obtains
regulatory approval, that the Company is able to obtain material
from third parties on reasonable terms, future metal prices and the
demand and market outlook for metals. 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, that
occurrences such as those referred to above are realized and result
in delays, or cessation in planned work, that the Company's
financial condition and development plans change, delays in
regulatory approval, risks associated with the interpretation of
data, the geology, grade and continuity of mineral deposits, the
possibility that results will not be consistent with the Company's
expectations, 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 Annual Information Form
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.
SOURCE SantaCruz Silver Mining Ltd.