Santacruz Closes First Tranche of Private Placement
TSX.V: SCZ
FSE: 1SZ
February 25, 2020
Santacruz Closes First Tranche of Private Placement
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”) reports that
further to its press release dated February 13, 202 0 it has closed the first tranche of its non-broker ed C$3.0
million private placement (the “Private Placement”) .
The Company raised gross proceeds of C$734,150 from the sale of 6,117,917 units (the “Units”) pursuant to
the first tranche of the Private Placement at price of C$0.12 per Unit. Each Unit consisted of one co mmon
share of the Company and one non-transferable commo n share purchase warrant (a “Warrant”). Each
Warrant entitles the holder to acquire one common s hare of the Company at a price of C$0.18 per share until
February 25, 2021.
The net proceeds from the Private Placement will be used for general working capital and corporate pur poses,
as applicable.
In connection with the closing of the first tranche , the Company paid finder's fees totalling $14,400 cash and
120,000 share purchase warrants bearing the same te rms as the Warrants.
All securities issued and issuable pursuant to the first tranche of the Private Placement are subject to a
statutory hold period of four months plus one day f rom the date of closing, in accordance with applica ble
Canadian securities legislation, expiring on June 26, 2020.
Directors and officers of the Company purchased an aggregate of 3,517,917 Units under the first tranch e of
the Private Placement constituting, to that extent, a "related party transaction" under Multilateral I nstrument
61-101 Protection of Minority Security Holders in Special Transactions ("MI 61-101"). The insider participation
in the Private Placement is exempt from the formal valuation and minority shareholder approval require ments
of MI 61-101.
The Company did not file a material change report m ore than 21 days before the expected closing of the first
tranche of the Private Placement, as the details an d amounts of the insider participation were not fin alized until
closer to the closing and the Company wished to clo se the transaction as soon as practicable for sound
business reasons.
The Company plans to close any additional tranches of the Private Placement on or before March 23, 2020.
This press release shall not constitute an offer to sell or solicitation of an offer to buy the securi ties in
any jurisdiction. The securities will not be and ha ve not been registered under the United States
Securities Act of 1933 and may not be offered or so ld in the United States absent registration or
applicable exemption from the registration requirem ents.
About Santacruz Silver Mining Ltd.
Santacruz is a Mexican focused silver company with two producing silver projects (Rosario and Veta Gra nde)
and two exploration properties, the Minillas proper ty and Zacatecas properties. The Company also owns 100%
of Carrizal Mining S.A. de C.V. Carrizal Mining is a private Mexican mining company, the principal as set of
which is a 20% working interest in the Company’s Ve ta Grande Project. Carrizal Mining also has the ri ght to
operate the Zimapan Mine until December 31, 2020 un der a mining lease agreement.
The Company is managed by a technical team of profe ssionals with proven track records in developing,
operating and discovering silver mines in Mexico. O ur corporate objective is to become a mid-tier silv er
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 c onstitute "forward-looking information" as such ter m is
used in applicable Canadian securities laws, includ ing statements relating to the Company's plans to c omplete
the Private Placement. 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. In
making the forward-looking statements included in t his news release, the Company has applied several
material assumptions, including but not limited to, that the Company's financial condition and develop ment
plans do not change as a result of unforeseen event s, that the Company will receive all required regul atory
approvals, and that future metal prices and the dem and and market outlook for metals will remain stabl e or
improve. Forward-looking information is subject to a variety of risks and uncertainties and other fac tors that
could cause plans, estimates and actual results to vary materially from those projected in such forwar d-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: failure of the Private Placement to complete in full on th e proposed
terms; unanticipated delays in obtaining or failure to obtain regulatory or stock exchange approvals; general
economic, market or business conditions; the risk t hat any of the assumptions referred to prove not to be valid
or reliable, which could result in lower revenue, h igher cost, or lower production levels; delays and/ or
cessation in planned work; changes in the Company's financial condition and development plans; risks
associated with the interpretation of data (includi ng in respect of the third party mineralized materi al) regarding
the geology, grade and continuity of mineral deposi ts; the possibility that results will not be consis tent 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 fo rth 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-lookin g
information will prove to be accurate, as actual re sults and future events could differ materially fro m those
anticipated in such statements. Accordingly, the re ader should not place any undue reliance on forward -
looking information or statements. The Company unde rtakes no obligation to update forward-looking
information or statements, other than as required by applicable law.