Carrizal Mining Enters Agreement For Extension of Mine Lease on Zimapan Mine; Santacruz Schedules 2019 Annual General Meeting
TSX.V: SCZ
FSE: 1SZ
August 12, 2019
Carrizal Mining Enters Agreement For Extension of Mine Lease on Zimapan Mine;
Santacruz Schedules 2019 Annual General Meeting
Vancouver, B.C. – Santacruz Silver Mining Ltd. (TSX.V:SCZ) (the “Company” or “Santacruz”) reports that
its 50% owned subsidiary company, Carrizal Mining, S.A. de C.V. (“Carrizal”) has entered into an agreement
with Minera Cedros, S.A. de C.V. (“Minera Cedros”), a wholly -own subsidiary of Grupo Peñoles, S.A.B. de
C.V., to extend the expiry date of the current Zimapan Mine lease agreement (see press release dated July 2,
2019) from July 31, 2019 to December 31, 2019.
Arturo Prestamo, Santacruz’s CEO stated, " We are pleased that Mineral Cedros has agre ed to extend the
current expiry date of the Zimapan Mine lease agreement as this provides Carrizal and Minera Cedros
additional time to negotiate the potential acquisition of the Zimapan Mine by Carrizal from Minera Cedros.”
Pursuant to the terms of the existing Zimapan Mine lease agreement , Carrizal must make monthly payments
to Minera Cedros based on 4% of the net smelter receipts from the concentrates produced by the Zimapan
Mine for each respective month, subject to the minimum payment each month being US$45,000 and the
maximum payment being US$60,000.
There is no assurance that Carrizal will be successful in completing the acquisition of the Zimapan Mine . Any
transaction to acquire the Zimapan Mine will be subject to receipt of all necessary regulat ory approvals ,
including Santacruz obtaining the approval of the TSX Venture Exchange.
The Company also reports that it has scheduled its annual general meeting for October 1, 2019. In addition to
dealing with routine annual approvals, sh areholders will be asked to vote on approval of the Company's
acquisition of the remaining 50% of the outstanding shares of PCG Mining, S.A. de C.V. (see press release
dated July 2, 2019). Further details will be included in the Company' s information circu lar to be sent to
shareholders and filed on www.sedar.com.
About Santacruz Silver Mining Ltd.
Santacruz is a Mexican focused silver company with two producing silver projects, Veta Grande and Rosario,
and two exploration properties, the Minillas property and Zacatecas properties . The Company also owns 50%
of PCG Mining, S.A. de C.V, a holding company that owns 100% of Carrizal Mining S.A. de C.V. Carrizal
Mining is a private Mexican mining company , the principal ass et of which is a 20% working interest in the
Company’s Veta Grande Project . Carrizal Mining also h as the right to operate the Zimapan Mine until
December 31, 2019 under a mining lease agreement.
The Company is managed by a technical tea m of professional s with proven tra ck 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
For further information please contact:
Arturo Prestamo
Santacruz Silver Mining Ltd.
Email: [email protected]
Telephone: (604) 569-1609
Neither the TSX Venture Exchange nor its Regul ation 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 constitute "fo rward-looking inf ormation" as such term is
used in applicable Canadian securities laws , including statements relating to the potential acquisition of the
Zimapan Mine. Forward-looking information is based on plans, expectations and estimates of management at
the date the i nformation is pro vided and is subject to certain factors and assumptions. In making the forward -
looking statements included in this news release, the Company has applied several material assumptions,
including, but not limited to, assumpti ons as to the abi lity of Carrizal to negotiate the acquisition of the
Zimapan Mine on terms acceptable to Carrizal, or at all; the Company's financial condition and development
plans do not change as a result of unforeseen events ; third party mineralized material to be mil led by the
Company will have properties consistent with management's expectations ; that the Company will receive all
required regulatory approvals; and that future metal prices and the demand and market outlook for metals will
remain s table or improve. For ward-looking info rmation 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 tha t could cause the for ward-looking info rmation 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, which could result in lower revenue, highe r cost, or lower
production levels; de lays and/or the inability of Carrizal to negotiate the acquisition of the Zimapan Mine ;
changes in the Company's financial condition and development plans; delays in or failure to obtain regulatory
approvals; risks ass ociated with the inte rpretation of dat a (including in respect of the third party mineralized
material) regarding 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 ris ks and uncertainties applicable to mineral
exploration and development activities and to the Company as set forth in the Company's continuous
disclosure filings 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 no t place any undue reli ance 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.
Rosario Project
The decisions to commence productio n at the Rosario Mine, Cinco Estrellas Property and Membrillo Prospect
were not based on a feasibility study of mineral reserves demonstrating economic and technical viability, but
rather on a more preliminary estimate of inferred mineral resources. Accord ingly, there is increa sed
uncertainty a nd economic and technical risks of failure associated with this production decision. Production
and economic variables may vary considerably, due to the absence of a complete and detailed site analysis
according to and in accordance with NI 43-101.
Veta Grande Project
The decision to commence production at Veta Grande Project was not based on a feasibility study on mineral
reserves demonstrating economic and technical viability. Accordingly, there is increased uncertai nty and
economic and t echnical risks of failure associated with this production decision. Production and economic
variables may vary considerably due to the absence of a complete and detailed site analysis according to and
in accordance with NI 43-101.