Santacruz Silver Closes First Tranche of Non-Brokered Private Placement
TSX.V: SCZ
FSE: 1SZ
July 28, 2017
NOT FOR DISTRIBUTION TO UNITED STATES NEWS WIRE SERVICES
OR FOR DISSEMINATION IN THE UNITED STATES
Santacruz Silver Closes First Tranche of Non-Brokered Private Placement
Vancouver, B.C. – Santacruz Silver Mining Ltd. (TSX.V:SCZ) (the “Company” or “Santacruz”) reports that
further to its news release dated June 28, 2017, it has closed, for gross proceeds of $935,000, the first
tranche of the previously announced non- brokered private placement for gross proceeds of up to $1,500,000
(the “Private Placement”).
The Company sold 4,675,000 units (the “Units”) pursuant to the Offering at price of $0.20 per Unit. Each unit
consisted of one common share of the Company and one com mon share purchase warrant (a “Warrant”).
Each Warrant entitles the holder to acquire one common share of the Company at a price of $0.28 per share
for a period of 30 months expiring on January 27, 2020. Robert McMorran, the Chief Financial Officer and
Corporate Secretary of the Company, purchased 625,000 Units and Roland Löhner, a director of the
Company, purchased 1,000,000 Units for aggregate proceeds of $325,000. Their participation is considered to
be a "related party transaction" within the meaning of TSXV Policy 5.9 and Multilateral Instrument 61- 101 (“MI
61-101”). The Company is relying on the exemptions from the valuation and minority shareholder approval
requirements of MI 61- 101 contained in Sections 5.5(a) and 5.7(1)(a) of MI 61- 101 in respect of such
participation as neither the fair market value of the shares issued to, nor the consideration paid by, such
persons exceeds 25% of the Company's market capitalization.
The net proceeds from the Private Placement will be used for general working ca pital and corporate purposes,
as applicable. All securities issued pursuant to the Private Placement are subject to a statutory hold period of
four months plus one day from the date of issuance, in accordance with applicable securities legislation,
expiring on November 28, 2017.
In connection with the first tranche of the Private Placement, the Company paid finders' fees totalling an
aggregate of $29,400, which represents 6% of the gross proceeds from subscribers introduced by such
finders.
This news release does not constitute an offer to sell or a solicitation of an offer to buy nor shall there be any
sale of any of the securities described herein in any jurisdiction in which such offer, solicitation or sale would
be unlawful. The securities described herein have not been and will not be registered under the United St ates
Securities Act of 1933, as amended (the "U.S. Securities Act"), or the securities laws of any state of t he United
States and may not be offered or sold within the United States (as def ined in Regulation S under the U.S .
Securities Act) unless registered under the U.S. Securities Act and applicable state securities laws or pursuant
to an exemption from such registration requirements.
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 Vein, and the right to operate the Veta Grande silver project and
milling facility); and three exploration properties including the Gavilanes property, 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:
Neil MacRae
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, without limitation, statements regarding the anticipated use of proceeds
from 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 this news release, the Company has applied several material assumptions, including but not limited
to, that the Company's financial condition and development plans do not change as a r esult of unforeseen events, that
third party mineralized material to be milled by the Company will have properties consistent with management's
expectations, that the Company will receive all required regulatory approvals, including final approval of the T SX Venture
Exchange in respect of the Private Placement, 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 assumptions 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 financia l condition and development plans; delays in regulatory 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 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
assurance that any forward-looking information will prove to be accurate, as actual results and future events could differ
materially from thos e 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.
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 o n 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 detailed 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. 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 detailed site analysis according to and in accordance with NI 43-101.