Santacruz Silver Amends San Felipe Agreement
VANCOUVER, Sept. 4, 2014 /CNW/ - 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.
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.For further information: Neil MacRae, Santacruz Silver Mining Ltd., Email: email@example.com, Telephone: (604) 569-1609