Santacruz to Receive Monthly Fees of Approximately US$1.1 Million from Carrizal Mining Pursuant to a Services Agreement
TSX.V: SCZ
FSE: 1SZ
March 1, 2018
Santacruz to Receive Monthly Fees of Approximately US$1.1 Million from Carrizal Mining Pursuant to a
Services Agreement
Vancouver, B.C. – Santacruz Silver Mining Ltd. (TSX.V:SCZ) (the “Company” or “Santacruz”) reports that
the Company has entered into a services agreement (the “ Agreement”) with Carrizal Mining, S.A. de C.V.
(“Carrizal”) pursuant to which Santacruz will provide to Carrizal certain mine development, metallurgurical and
geological consulting services as well as other administrative services . The Agreement is open ended but
management expects it will remain i n force until at least the end of 2018 . As consideration for the services
Carrizal will make monthly payments to Santacruz of approximately US$1.1 million . Santacruz intends to use
the funds for working capital purposes.
Arturo Préstamo, CEO of Santacruz, stated "This services agreement is an important step for the Company as
it will provide working capital t hat will allow us to expand the Veta Grande Project into a significant silver
producer, whilst increasing the Rosario Project production during the year. "
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 Prospect, and the Veta Grande project and milling facility) and two
exploration properties, including the 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.
About Carrizal Mining, S.A. de C.V.
Carrizal Mining is a Mexican p rivately owned Company which operates the Zimapan mine in Zimapan Hidalgo
Mexico. The Company operates a 3,200 tpd mill and produces approximately 5.5 million silver equivalent
ounces a year.
‘signed’
Arturo Préstamo Elizondo,
President, Chief Executive Officer and Director
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 r elease constitute "forward -looking information" as such term is
used in applicable Canadian securities laws. Forward -looking information is based on plans, expectations and
estimates of management at the date the information is provided and is subject to c ertain 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, assumptions as to the continuation of
payments under the Agreement , the expansion of the Vita Grande Project, the Company's financial condition
and development plans do not change as a result of unforeseen event s, third party mineralized material to be
milled by the Company will have properties consistent with managemen t's expectations, 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 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 b e 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 financial
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 con tinuous 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.
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 via bility, but
rather on 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 co nsiderably, 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 d emonstrating 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.