VANCOUVER, June 16, 2015 /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 with Minera Hochschild Mexico S.A. de C.V. ("MHM" or "Hochschild") to acquire a 100% interest in the San Felipe project and adjacent El Gachi property located near Hermosillo, Sonora, Mexico.
Terms of the initial agreement with MHM dated August 3, 2011, as amended (see the Company's press releases October 9, 2012, August 14, 2013 and also September 4, 2014), included upcoming payments of US$5,000,000 on or before December 1, 2015 and a final payment of US$14,000,000 on or before December 15, 2016 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 the most recently amended agreement ("the Amending Agreement"), Impulsora can now acquire 100% of the San Felipe project and the El Gachi property, including all assets related to the properties, by making a payment of US$19,000,000 on or before December 1, 2016.
President Arturo Préstamo stated, "We thank Hochschild Mining for their support in amending the payment schedule in light of the challenges facing all mining companies in the current market environment. The flexibility created through the extension will allow us to further de-risk the San Felipe project through additional technical studies ultimately leading to a pre-feasibility study and the permits necessary for construction at San Felipe. Management believes the San Felipe project will become one of the premier assets in our portfolio in the near future."
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 the parties' obligations under the amended agreement, productions plans and cash flow at Rosario and development at San Felipe grades, mine and mill development and the acquisition of mineralized material from third parties, constitute "forward-looking information" as such term is used in applicable Canadian securities laws. Any forward-looking information that constitutes a financial outlook is intended to provide information about management's current expectations and plans relating to the future. Readers are cautioned that reliance on such information may not be appropriate for other purposes. 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 required regulatory approvals, that the Company is able to obtain material from third parties on reasonable terms, future metal prices and that the demand and market outlook for metals do not decline significantly. 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 protected], Telephone: (604) 569-1609