Santacruz Silver to Sell Zacatecas Property to SEAS Oned Mining Team
TSX.V: SCZ
FSE: 1SZ
July 23, 2020
SANTACRUZ SILVER TO SELL ZACATECAS PROPERTY TO SEAS ONED MINING TEAM
Vancouver, B.C. - Santacruz Silver Mining Ltd. (TSX.V:SCZ) (“Santacruz” or the “Company”) is pleased to
announce that it has entered into an agreement with Zacatecas Silver Corp. (“Zacatecas Silver”) for th e sale of
a 100% interest in the Zacatecas Properties (the “P roperties”), located in the Zacatecas Mining Distri ct,
Mexico, for consideration of US $1.5 million and th e issuance of 5,000,000 common shares of Zacatecas
Silver.
Zacatecas Silver is a privately held silver focused exploration company, headed by Bryan Slusarchuk an d
financially backed by industry leading mining operators and financiers.
• The Zacatecas Properties comprise 149 mining conce ssions totaling approximately 7,826 ha (19,338
acres), and are located on the highly prospective F resnillo Silver Belt, which has produced over 6.2
billion ounces of silver.
• The Properties include the Panuco Deposit, which h as an inferred mineral resource of 19,472,901
ounces from 3,954,729 tonnes at 153.2 g/t Ag Eq wit h significant resource expansion potential and
high-grade silver exploration upside (see news rele ase dated August 29, 2019). Mineralization at the
Panuco Deposit remains open along strike and down dip.
• The Zacatecas Properties are located 25 km south-e ast of MAG Silver Corp.’s Juanicipio Mine and
Fresnillo PLC’s Fresnillo Mine and in close proximi ty to Pan American Silver Corp. claims and El Orito
from Endeavour Silver.
Santacruz Silver CEO, Carlos A. Silva states, “Sant acruz is very pleased to have attracted Bryan Slusa rchuk
and the Zacatecas Silver team to the Properties. Wh ile we identified the potential and acquired the Pr operties
during the downturn in the silver cycle we are now pleased to vend these Properties to an experienced team
that can advance the Properties and maximize shareh older value in current market conditions. By transa cting
with Zacatecas Silver, we anticipate that the Prope rties will be very well funded and aggressively dri lled. Any
future success realized by Zacatecas Silver will in turn benefit Santacruz and its shareholders due to
Santacurz’s equity interest post transaction.”
Zacatecas Silver CEO, Bryan Slusarchuk states, “We are big believers that macro conditions for silver have
never been better. It is also undisputable that Zac atecas is one of the world’s best addresses for hig h grade
silver. To acquire a project with historic high-gra de intercepts, an inferred mineral resource with ex pansion and
exploration upside is very timely. Our team has cre ated significant shareholder value for precious met als
investors during the bear market and now with a pre cious metals bull starting, we are ideally position ed in
terms of technical expertise and capital markets ab ility to continue delivering excellent potential up side going
forward.”
Terms of Transaction
Under the terms of the transaction, the Company wil l sell a 100% interest in the Zacatecas Property fo r $1.5
million (of which US $500,000 will be paid on listi ng of Zacatecas, US $500,000 on the first anniversa ry of
listing and a final US $500,000 on the second anniv ersary of listing) and 5,000,000 common shares of
Zacatecas. Zacatecas has also agreed to complete a financing of $5,000,000 for the purpose of explora tion of
the Zacatecas Properties and to obtain a listing of its common shares on the TSX Venture Exchange by
December 31, 2020.
The transaction is subject to approval of the TSX V enture Exchange and the entering into a definitive
agreement by the parties.
Qualified Persons
The technical information contained in this news release has been reviewed and approved by Van Phu Bui ,
bachelor of science, professional geoscientist, who is independent of the company and a qualified pers on
under National Instrument 43-101.
About Santacruz Silver Mining Ltd.
Santacruz is a Mexican focused silver company with one active producing silver project (Rosario), one project
whose operations have been suspended (Veta Grande) and two exploration properties, the Minillas proper ty
and Zacatecas properties. T he Company also owns 100% of Carrizal. Carrizal is a private Mexican mining
company, which holds a 20% working interest in the Company´s Zacatecas mineral portfolio and assets an d
has the right to operate the Zimapan Mine until December 31, 2020 under 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,
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 c onstitute "forward-looking information" as such ter m is
used in applicable Canadian securities laws, includ ing statements relating to the agreement with Miner a
Cedros and the acquisition of the Zimapan Mine by t he Company. 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 for ward-looking statements included in this news relea se, the
Company has applied several material assumptions, i ncluding that the Company's financial condition and
development plans do not change as a result of unfo reseen events, and that future metal prices and the
demand and market outlook for metals will remain st able or improve. Forward-looking information is su bject to
a variety of risks and uncertainties and other fact ors that could cause plans, estimates and actual re sults to
vary materially from those projected in such forwar d-looking information. Factors that could cause th e
forward-looking information in this news release to change or to be inaccurate include, but are not li mited to,
the risk that any of the assumptions referred to ab ove prove not to be valid or reliable; there can be no
assurance that the Company will be successful in co mpleting the acquisition of the Zimapan Mine (inclu ding
obtaining the necessary funding for the Purchase Pr ice); risk of delays or inability to obtain the app roval of the
TSXV to the acquisition of the Zimapan Mine; market conditions and volatility and global economic cond itions,
including increased volatility and potentially nega tive 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 glo bal
markets; risk of delay and/or cessation in planned work or changes in the Company's financial conditio n and
development plans; risks associated with the interp retation of data (including in respect of the third party
mineralized material) regarding the geology, grade and continuity of mineral deposits; the uncertainty of the
geology, grade and continuity of mineral deposits a nd the risk of unexpected variations in mineral res ources,
grade and/or recovery rates; risks related to gold, silver, base metal and other commodity price fluct uations;
risks relating to environmental regulation and liab ility; the possibility that results will not be con sistent 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.