Santacruz Anounces $12 Million Private Placement With A Lead Order from Palisades Goldcorp
TSX.V: SCZ
FSE: 1SZ
March 4, 2021
Santacruz Anounces $12 Million Private Placement With A Lead Order from Palisades
Goldcorp
Not for distribution to United States newswire services or for dissemination in the United States
Vancouver, B.C. -- Santacruz Silver Mining Ltd. (TSX.V:SCZ) (the "Company" or "Santacruz") is pleased to
announce a non-brokered private placement (the "Private Placement") for up to 40,000,000 units (the "Units")
at a purchase price of C$0.30 per Unit, for gross proceeds to the Company of up to C$12,000,000, with a lead
order from Palisades Goldcorp Ltd . Each Unit will consist of one common share of the Company and one
common share purchase warrant (a "Warrant"). Each Warrant will entitle the holder to acquire one common
share of the Company at a price of C$0. 45 per share for a period of 36 months following the issue of the
Warrant. The Company may pay a finder's fee to arm's -length finders in connection with the issue and sale of
any or all o f the securities under the Private Placement. The finder's fee shall consist of not more than a 6%
cash payment calculated with reference to the gross proceeds of the Private Placement in rela tion to
subscribers introduced by any particular finder.
The p roceeds from the Private Placement are expected to be used by the Company to complement the
Zimapan Assets acquisition, to accelerate exploration activities at the Horizontes (Lomo del Toro) area and for
general working capital and corporate purposes. All securities issued will be subject to a four mo nth hold
period, in addition to such other restrictions as may apply under applicable securities laws of jurisdictions
outside of Canada.
Closing of the Private Placement is anticipated to occur in one or more tranches on or before March 22, 2021
and is su bject to the receipt of applicable regulatory approvals including approval of the TSX Venture
Exchange.
This press release shall not constitute an offer to sell or solicitation of an offer to b uy the securities in
any jurisdiction. The securities will not be and have not been registered under the United States
Securities Act of 1933 and may not be offered or sold in the United States absent registration or
applicable exemption from the registration requirements.
About Palisades Goldcorp Ltd.
Palisades Goldcorp is Canada's resource focused merchant bank. Palisades' management team has a
demonstrated track record of making money and is backed by many of the industry's most notable financiers.
With junior resource equities valued at generational lows, management believes the sector is on the cusp of a
major bull market move. Palisades is positioning itself with signi ficant stakes in undervalued companies and
assets with the goal of generating superior returns.
About Santacruz Silver Mining Ltd.
Santacruz is a Mexican focused silver company that currently owns and operates the Rosario Project. The
Company also owns 100% of Carrizal Mining S.A. de C.V. On February 25, 2021 the Company announced
that it had entered into a definit ive agreement with Minera Cedros, S.A. de C.V. (“Minera Cedros”), a wholly
owned subsidiary of IndustriasPeñoles, S.A. B. de C.V., to acquire outright the Zimapan Mine and all assets
related to the Zimapan mine and mill for US$20.0 million (plus applicable IVA of US$3.2 million), subject to a
number of condition s, including receipt of all necessary regulatory approvals including approval of the TSX
Venture Exchange ("TSXV") to the transaction which will constitute a "Fundamental Acquisit ion" pursuant to
TSXV Policy 5.3.
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 b ecome a mid -tier si lver
producer.
‘signed’
Arturo Préstamo Elizondo,
Executive Chairman
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 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.
The information in this news release under the section titled "About Palisades Goldcorp Ltd." was provided by
management of Palisades Goldcorp Ltd.
Forward looking information
Certain state ments contained in this news release constitute "forward -looking information" as such term is
used in applicable C anadian securities laws, including statements relating to the Company's plans to conduct
the Private Placement , the agreement with Minera Cedros and the acquisition of the Zimapan Mine by the
Company. Forward-looking information is based on plans, expectat ions and estimates of m anagement at the
date the information is provided and is subject to certain factors and assumptions. In making the for ward-
looking statements included in this news release, the Company has applied several material assumptions,
including that the Company's financial condition and development plans do not change as a result of
unforeseen events, that the Company will receive all required regulatory approvals and that future metal prices
and the demand and market outlook for metals will remain stable or impro ve. 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 caus e
the forward-looking information in this news release to change or to be inaccurate include, but are not limited
to, failure of the Private Placement to be arranged on the proposed terms or at all; unanticipated delays in
obtaining or failure to obtain re gulatory or stock exchange approvals; the risk that any of the assumptions
referred to above prove not to be valid or reliable; there can be no assurance that the Company will be
successful in completing the acquisition of the Zimap an Mine (including obtaining the necessary funding); risk
of delays or inability to obtain the approval of the TSXV to the acquisition of the Zimapan Mine; market
conditions and volatility and global economic conditions , including increased volatility and potentially negative
capital raising conditions resulting from the continued COVID-19 pandemic and risks relating to the extent and
duration of such pandemic and its impact on global markets ; risk of delay and/or cessation in planned work or
changes in the Company's financial condition and development plans; risks associated with the interpretation
of data (including in respect of the third party mineralized material) regarding the geology, grade and continuity
of mineral deposits; the uncertainty of the ge ology, grade and contin uity of mineral deposits and the risk of
unexpected variations in mineral resources, grade and/or recovery rates; risks related to gold, silver, base
metal and other commodity price fluctuations; risks relating to environmental regul ation and liability; th e
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 continuous disclosure filings filed under the Company's profile at www.sedar.com. There can
be no a ssurance 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 i nformation or statements. The Company undertakes no
obligation to update forward-looking information or statements, other than as required by applicable law.