Santacruz Provides Update on Zimapan Mine Acquisition and Related Debt Financing, and Private Placement With A Lead Order From Palisades Goldcorp
TSX.V: SCZ
FSE: 1SZ
April 6, 2021
Santacruz Provides Update on Zimapan Mine Acquisition and Related Debt Financing, and
Private Placement With A Lead Order From Palisades Goldcorp
Vancouver, B.C. -- Santacruz Silver Mining Ltd. (TSX.V:SCZ) (the "Company" or "Santacruz") announces
that the acquisition of the Zimapan mine assets from Minera Cedros, S.A. de C.V. ("Minera Cedros") , together
with the US$17.6 million loan facility from Trafigura Mexico, S.A. de C.V. (the "Trafigura Loan Facility") , are
now expected to close on or before April 16, 2021. These transactions were last described in the Company's
news release dated February 25, 2021.
Pursuant to the definitive purchase agreement dated February 24, 2021 (the "Purchase Agreement") between
the Company’s wholly-owned subsidiary, Carrizal Mining S.A. de C.V. ("Carrizal"), and Minera Cedros, closing
of the acquisition of the Zimapan mine, including payment by Carrizal of US$15 million o f the purchase price,
is required to occur within 60 days of the date of the Purchase Agreement , being April 26, 2021. The US$15
million payment will be funded by the Trafigura Loan Facility. The balance of the US$20 million (plus
applicable Mexican Value Added Tax of US$3.2 million) purchase price for the Zimapan mine , being US$8.2
million, is payable to Minera Cedros within 5 months of closing in accordance with the Purchase Agreement.
The previously announced private placement of up to 47,000,000 units of the Company at a price of
CDN$0.30 per unit to raise gross proceeds of up to CDN$14,100,000 with a l ead order from Palisades
Goldcorp (refer to the news release dated March 18, 2021) is expected to close in one or more tranches on or
about April 9, 2021.
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 definitive agreement with Minera Cedros, S.A. de C.V. (“Minera Cedros”), a wholly
owned subsidiary of Industrias Peñoles, 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 conditions, including receipt of all necessary regulatory approvals including approval of the TSX
Venture Exchange (" TSXV") to the transaction which will constitute a "Fundamental Acquisition" 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.
About Palisades Goldcorp
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 significant stakes in undervalued companies and
assets with the goal of generating superior returns.
‘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.
Forward looking information
Certain statements contained in this news release constitute "forward -looking information" as such term is
used in applicable Canadian securities laws , including statements relating to the completion of the acquisition
of the Zimapan Mine by the Company and related financing transactions. 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 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 improve. Forward -looking information is subject to a variety of risks and uncertainties and other
factors that could cause plans, estimates and actual resul ts 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, unanticipated delays in obtaining or failure to obtain
regulatory or stock exchange approvals; the risk that any of the assumptions referred to above prove not to be
valid or reliable; 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 continuity 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
regulation and liability; the 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 Compa ny'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 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.