Santacruz Arranges Short-Term US$2.3 Million Loan
TSX.V: SCZ
FSE: 1SZ
March 7, 2018
Santacruz Arranges Short-Term US$2.3 Million Loan
Vancouver, B.C. – Santacruz Silver Mining Ltd. (TSX.V:SCZ) (“Santacruz”) reports that it s wholly-owned
subsidiary, Impulsora Minera Santacruz, S.A de C.V. (together with Santacruz the “Company”), has arranged a
loan (the “Loan”) from a private Bolivian mining company, for US$2.3 million. The Loan bears inte rest at 9%
per annum, is repayable July 1st, 2018, and is unsecured. In connection with the Loan the Company has agreed
to issue the lender 2,000,000 warrants exercisable until the end of business on March 6, 2019, at $0.16 per
share. The issuance of the warrants is subject to TSX Venture Exchange approval.
Arturo Prestamo, President and CEO of Santacruz commented “The Loan proceeds will be used to reduce our
current trade payables balance which together with the recent Carrizal services agreement will assist to improve
our mining operations at both Veta Grande and Rosario. Management views this as another important step in
the development of the Company.”
About Santacruz Silver Mining Ltd.
Santacruz is a Mexican focused silver company with two producing silver projects (Rosario, including the Cinco
Estrellas property and Membrillo Prospect, and Veta Grande) and two exploration properties, the Minillas
property and Zacatecas properties. 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
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.
Forward looking information
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 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, assumptions that the Company's financial condition
and development plans do not change as a result of unforeseen events, third party mineralized material to be
milled by the Company will have properties consistent with management's expectations, the Company will
receive all required regulatory ap provals, and that future metal prices and the demand and market outlook for
metals will remain stable or improve. 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 assum ptions referred to
prove not to be valid or reliable, which could result in lower revenue, higher cost, or lower production levels;
delays and/or cessation in planned work; changes in the Company's financial condition and development plans;
delays in regul atory approval; 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 possibility that
results will not be consistent with the Co mpany'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 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. Accordingl y, 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 decisions to commence production 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. 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 det ailed 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. Acc ordingly, 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.