Santacruz Silver Acquires New 500-Tonne-Per- Day Milling Facility to Unlock Further Production Growth in Bolivia Acquisition Provides Dedicated Processing Capacity for San Lucas While Releasing Additional Capacity Across Existing
Santacruz Silver Acquires New 500-Tonne-Per-
Day Milling Facility to Unlock Further
Production Growth in Bolivia
Acquisition Provides Dedicated Processing Capacity for San
Lucas While Releasing Additional Capacity Across Existing
Mines
Vancouver, British Columbia--(Newsfile Corp. - September 18, 2026) -
Santacruz Silver Mining Ltd.
(NASDAQ: SCZM) (TSXV: SCZ)
("
Santacruz
" or the "
Company
") is pleased to announce that it has
completed the acquisition of a 500-tonne-per-day ("
tpd
") milling facility located in Bolivia, comprising
two 250-tonne-per-day processing circuits, each equipped with selective flotation systems for the
recovery of lead and zinc with high-grade silver contents. The newly acquired facility will be solely
dedicated to processing ore sourced through the Company's wholly-owned Bolivian subsidiary, San
Lucas, providing additional milling capacity to support continued expansion of its third-party ore-sourcing
business.
By transitioning materials from San Lucas to the acquired facility, Santacruz will free up capacity at its
existing three mine processing facilities, allowing the Company to advance its mine development plans
and increase production from its own operations in Bolivia without internally competing for available
processing capacity.
Strategically located approximately 5 kilometres from Santacruz's Reserva mine, part of the Company's
Caballo Blanco group of mines, the acquired facility provides logistical and operational advantages as
Santacruz continues to develop and expand its Bolivian asset base. The acquisition also strengthens
Santacruz's vertically integrated operating model in Bolivia by providing greater flexibility and control
over the processing of third-party sourced ore. Together with the Company's existing facilities, it
establishes an expanded processing platform in one of Santacruz's key operating districts, supporting
longer-term production and development plans.
The facility is expected to be commissioned during the fourth quarter of 2026 and to reach commercial
production by year-end 2026. Commissioning activities will include the testing and optimization of the
milling and selective flotation circuits, followed by the ramp-up of operations toward commercial
production. The total investment in the milling facility is expected to be approximately US$14 million,
inclusive of acquisition, commissioning and all costs required to bring the facility to commercial
production.
Arturo Préstamo, Executive Chairman and CEO of Santacruz, commented: "This acquisition is a win-win
for Santacruz's operating platform. The addition of 500 tpd of milling capacity gives San Lucas a clear
path to continue increasing its volumes, while freeing up capacity at our existing milling facilities for ore
from our own mines. This will allow our mining operations to advance their development and production
growth plans without being constrained by milling capacity. This is exactly the type of operating leverage
we look for at Santacruz-one investment that allows two parts of our business to grow at the same time."
Mr. Préstamo continued: "The new facility also creates a significant opportunity to accelerate growth
across our Bolivian operations. We expect the additional processing capacity, together with ongoing
mine development, operational optimization initiatives and increased ore availability, to support
continued production growth across Santacruz's platform. As a result, we anticipate increased
consolidated production in 2027, while San Lucas is expected to further expand its standalone
production, demonstrating the scalability and operating leverage of the Company's vertically integrated
Bolivian platform. Importantly, this acquisition is consistent with Santacruz's strategy of leveraging our
existing infrastructure, expanding processing capacity and maximizing production growth while
maintaining a disciplined approach to capital allocation."
Transaction Details
The Company has paid US$4.6 million toward the US$9.2 million total purchase price, with the
remaining US$4.6 million payable on November 8, 2026, one month following receipt of the milling
facility, expected on October 8, 2026. A further US$4.8 million will be allocated to milling upgrades and
working capital through commissioning and the achievement of commercial production.
About Santacruz Silver Mining Ltd.
Santacruz Silver is engaged in the operation, acquisition, exploration, and development of mineral
properties across Latin America. In Bolivia, the Company operates the Bolivar, Porco, and Caballo
Blanco mining complexes, with Caballo Blanco comprising the Tres Amigos and Colquechaquita mines.
The Reserva mine, whose production is provided to the San Lucas ore sourcing and trading business, is
also located in Bolivia. Additionally, the Company oversees the Soracaya exploration project. In Mexico,
Santacruz operates the Zimapan mine.
'signed'
Arturo Préstamo Elizondo,
Executive Chairman and CEO
For further information, please contact:
Arturo Préstamo
Santacruz Silver Mining Ltd.
Email:
Telephone: +52 81 83 785707
Andrés Bedregal
Santacruz Silver Mining Ltd.
Email:
Telephone: +591 22444849
Eduardo Torrecillas
Santacruz Silver Mining Ltd.
Email:
Telephone: +591 22444849
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the
policies of the TSX Venture Exchange) nor the Nasdaq Capital Market LLC accepts responsibility for
the adequacy or accuracy of this news release. No stock exchange, securities commission or other
regulatory authority has approved or disapproved the information contained herein.
Cautionary and Forward-Looking Statements
This release includes certain statements and information that may constitute forward-looking
information within the meaning of applicable Canadian securities laws. Forward-looking statements
relate to future events or future performance and reflect the expectations or beliefs of management of
the Company regarding future events. Generally, forward-looking statements and information can be
identified by the use of forward-looking terminology such as "intends" or "anticipates", or variations of
such words and phrases or statements that certain actions, events or results "may", "could", "should",
"would" or "occur". This information and these statements, referred to herein as "forward-looking
statements", are not historical facts, are made as of the date of this news release and include without
limitation, statements regarding the expected commissioning and commercial production timeline for
the newly acquired milling facility, the anticipated total investment of approximately US$14 million,
the expected increase in processing capacity and its impact on production growth, the freeing up of
capacity at existing mine processing facilities, anticipated increased consolidated production in 2027,
and the expected expansion of San Lucas's standalone production.
Such forward-looking information and statements are based on numerous assumptions, including
among others, that the acquired milling facility will be commissioned on schedule and achieve
commercial production by year-end 2026, that the total investment will not materially exceed the
anticipated US$14 million, that the transition of San Lucas ore to the new facility will proceed as
planned, and that market conditions will support continued production growth. Although the
assumptions made by the Company in providing forward-looking information or making forward-
looking statements are considered reasonable by management at the time, there can be no
assurance that such assumptions will prove to be accurate.
These forward-looking statements involve numerous risks and uncertainties and actual results might
differ materially from results suggested in any forward-looking statements. These risks and
uncertainties include, among other things, the risk that the commissioning of the milling facility may
not be completed on the anticipated timeline or at all, that costs may exceed expectations, that the
facility may not achieve the expected processing capacity, and that market, operational or regulatory
conditions may adversely affect production growth plans.
Although management of the Company has attempted to identify important factors that could cause
actual results to differ materially from those contained in forward-looking statements or forward-looking
information, there may be other factors that cause results not to be as anticipated, estimated or
intended. There can be no assurance that such statements will prove to be accurate, as actual results
and future events could differ materially from those anticipated in such statements. Accordingly,
readers should not place undue reliance on forward-looking statements and forward-looking
information. Readers are cautioned that reliance on such information may not be appropriate for other
purposes. The Company does not undertake to update any forward-looking statement, forward-looking
information or financial outlook that are incorporated by reference herein, except in accordance with
applicable securities laws. We seek safe harbour.
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