Santacruz Silver Reaches Agreement to Extend Zimapan Mine Lease and Updates Status of Zimapan Mine Acquisition
TSX.V: SCZ
FSE: 1SZ
December 15, 2020
Santacruz Silver Reaches Agreement to Extend Zimapan Mine Lease and Updates Status of
Zimapan Mine Acquisition
Vancouver, B.C. – Santacruz Silver Mining Ltd. (TSX.V:SCZ) (the “Company” or “Santacruz”) reports that
its wholly -owned subsidiary, Carrizal Mining S.A. de C.V. (“Carrizal”), has reached 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
extend the current mine lease on the Zimapan Mine from December 31, 2020 to June 30, 2021.
In a related matter, the Company advises that it and Minera Cedros are at an advanced stage of negotiations
with respect to executing the transaction (see press release dated July 28, 2020) in its terms, whereby
Santacruz will acquire the Zimapan Mine and all related assets.
Further, the Company advises that it is in advanced discussions with a senior mine finance group with resp ect
to putting in place a financing facility to support the acquisition of the Zimapan Mine and related assets.
Carlos Silva, CEO of Santacruz commented “Management is very pleased to have reached this
accommodating mining lease extension agreement with Minera Cedros in thes e difficult Covid -19 operating
times. We believe that we are well on our way to being able to complete the acquisition of the Zimapan Mine
in early 2021.”
About Santacruz Silver Mining Ltd.
Santacruz is a Mexican focused silver company that currently owns and operates the Rosario Mine. The
Company also owns 100% of Carrizal Mining . Carrizal Mining holds a 20% working interest in the Company’s
Veta Grande Project and has the right to operate the Zimapan Mine until June 30, 2021 under a mining lease
agreement. The acquisition of the Zimapan Mine and related assets is 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.
‘signed’
Arturo Préstamo Elizondo,
Executive Chairman
For further information please contact:
Arturo Prestamo
Santacruz Silver Mining Ltd.
Email: [email protected]
Telephone: 52 81 8378-5707
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 acquisition of the Zimapan
Mine by the Company and potent ial funding transactions for the Purchase Price thereof . 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 forwa rd-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 pl ans, 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, 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; there can be no assurance that the Company will be
successful in completing the acquisition of the Zimapan Mine (including obtaining the necessary funding); risk
of delays or inability to obtain the approval of the TSXV to the acquisition of the Zimapan Mine; 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 depos its; the uncertainty of the geology, 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 r elating 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 Com pany 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 r esults 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.