JDS\468302\DISPOSITION - El GACHI\5373V2
JDS\468302\DISPOSITION - EL GACHI\5373V2
TSX.V: SCZ
FSE: 1SZ
March 28, 2017
Santacruz Finalizes El Gachi Property Sale to First Majestic
Vancouver, B.C. – Santacruz Silver Mining Ltd. (TSX.V:SCZ) (“Santacruz” or the “Company”) announces
that the sale of its interest in the El Gachi Property in Sonora State, Mexico to First Majestic Silver Corp. (“First
Majestic”) for total consideration of US$2.5 million plus applicable VAT (see press release dated February 24,
2017) has been completed.
From the proc eeds of US$2.5 million plus VAT received by the Company, US$0.75 million has been paid to
JMET, LLC (“JMET”) to eliminate the residual balance of the interest bearing component of its indebtedness to
JMET, leaving a non-interest balance of US$1.5 million owing to JMET related to previous restructuring fees.
In addition, the Company paid US$0.50 million plus VAT to Minera Hochschild Mexico, S.A. de C.V . (“MHM”).
With this payment to MHM the Company has no further obligations to MHM with respect to the San F elipe or
El Gachi properties.
“The finalization of this deal with First Majestic on El Gachi and our preceding San Felipe deal with Americas
Silver are the culmination of management ’s strategic initiative to divest non- core assets from our mineral
property portfolio and focus on our producing assets, those being the Rosario Project and the Veta Grande
Project respectively”, stated Arturo Préstamo, President and CEO of Santacruz. “With an improved balance
sheet and no further property payments to MHM we are now better able to maximize the return on capital from
our silver production. “
About Santacruz Silver Mining Ltd.
Santacruz is a Mexican focused silver company with two producing silver projects (Rosario, including the
Cinco Estrellas property, and t he right to operate the Veta Grande project and milling facility; and three
exploration properties including the Gavilanes property, Minillas property and Zacatecas properties. The
Company is managed by a technical team of professionals with proven track r ecords 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:
Neil MacRae
Santacruz Silver Mining Ltd.
Email: [email protected]
Telephone: (604) 569-1609
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
JDS\468302\DISPOSITION - EL GACHI\5373V2
Certain statements contained in this news release 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 fi nancial condition and development plans do not change as a
result of unforeseen events . 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 materiall y 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, which could result in lower revenue, higher cost, lower production
levels, delays, and/or cessation in planned work, that the Company's financial condition and development
plans change, delays in regulatory approval, risks ass ociated 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 explorat ion 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 infor mation 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.
Rosario Project
The decision to commence production at the Rosario Project was 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. Accordingly, there is increased uncertainty and 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 the Veta Grande Project was not based on a feasibility study on
mineral reserves demonstrating economic and technical viability. Accordingly, there is increased uncertainty
and 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.
Cinco Estrellas Property
The decision to commence production at the Cinco Estrellas Property was not based on a feasibility study o n
mineral reserves demonstrating economic and technical viability. Accordingly, there is increased uncertainty
and 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.