TSX.V: SCZ
FSE: 1SZ
VANCOUVER, Oct. 2, 2014 /PRNewswire/
- Santacruz Silver Mining Ltd. ("Santacruz" or the
"Company") (TSX.V:SCZ) is pleased to announce that it has
finalized and closed the US$28.4
million Pre-paid Silver Purchase Agreement with JMET, LLC
("the Agreement") previously announced on September 18, 2014. The funds will be used to
advance the development of the Company's second project,
San Felipe, in Sonora State,
Mexico.
Pursuant to the terms of the Agreement, the Company has agreed
to sell 4,635,000 ounces of silver through August 2019, subject to certain adjustments
relating to metal prices. At the time of each delivery the
Company will receive an amount per ounce of silver equal to the
market price at the time, less a fixed discount. Under the
Agreement, the Company always maintains the upside on the silver
and all metal prices.
With the closing of this funding now completed, the Company
intends to advance the development of the San Felipe project with the expectation of
being in position to take a construction decision by the end of Q1
2015. The Company recently announced a Preliminary Economic
Assessment on the San Felipe Project with robust economics. (See
press release dated September 11,
2014)
President Arturo Préstamo stated
"Given the very difficult market conditions we are currently
experiencing, we are very pleased to have entered into the
Agreement which will allow us to continue with our plans to create
a mid-tier silver producer in Mexico." Mr. Préstamo continued, "This
non-dilutive approach gives the Company flexibility and also a
comfortable re-payment schedule."
The Company wishes to clarify its press release of September 4, 2014, relating to the amendment of
its agreement with Minera Hochschild Mexico S.A. de C.V.
("Hochschild") regarding the San
Felipe project. Under the amended agreement, Santacruz is
not obligated to pay Hochschild any amount from an offering
completed by the Company, but is required to pay Hochschild 30% of
any capital increase in its Mexican subsidiary Impulsora Minera
Santacruz at any time during the life of the agreement.
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, future development and a potential
construction decision in respect of the San Felipe project, 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 required regulatory approvals, 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
unforeseen events 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.