Santacruz to Transfer the El Gachi Property to First Majestic for US$2.5 Million
TSX.V: SCZ
FSE: 1SZ
February 24, 2017
Santacruz to Transfer the El Gachi Property to First Majestic for US$2.5 Million
Vancouver, B.C. – Santacruz Silver Mining Ltd. (TSX.V:SCZ) (“Santacruz” or the “Company”) announces
that it has signed a binding agreement (the “Agreement”) to transfer its interest in the El Gachi Property in
Sonora State, Mexico to First Majestic Silver Corp. (“First Majestic”) for total consideration of US$2.5 million
plus applicable VAT.
The El Gachi Property comprises a 48,057 hectare land package located adjacent to First Majestic’s Santa
Elena Mine in Sonora State, Mexico.
“With our corporate strategic focus being concentrated on our two producing projects, Veta Grande and
Rosario, the El Gachi Property became a non- core asset in our mineral property portfolio. ” stated Arturo
Préstamo, President and CEO of Santacruz . “As such we are pleased to enter this transaction with First
Majestic which allows us to monetize our investment , pay down debt, and provide additional working capital
for our core operations.”
Of the total proceeds received by the Company, approximately US$0.75 million will be paid to JMET, LLC as
partial re-payment of its outstanding loan, and US$0.5 8 million will be paid to Minera Hochschild Mexico, S.A.
de C.V.
Closing of the transaction is subject to satisfactory completion by First Majestic of its due diligence and to
certain other conditions customary in similar transactions.
About Santacruz Silver Mining Ltd.
Santacruz is a Mexican focused silver company with two producing silver projects (Rosario, including the
Cinco Estrellas property , and the right to operate the Veta Grande project and milling facility; an advanced-
stage development project (San Felipe) and thr ee exploration pro perties 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. O ur 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, such as planned production and milling levels, costs, sales
prices and efficiencies , constitute "forward- looking information" as s uch 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 certain factors and assumptions, including, that the
Company's financial condition and development plans do not change as a result of unforeseen events, that
third party ore to be milled by the Company has properties consistent with management's expectations, that
the Company obtains all required regulatory approvals, and that future metal prices and the demand and
market outlook for metals remains stable or improves . 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, lower production levels, delays, and/or cessation in planned work, that the Company's financial condition
and development plans change, delays in regul atory approval, risks associated with the interpretation of data
(including in respect of the third party ore) , the geology, grade and continuity of mineral deposits, the
possibility that results will not be consistent with the Company's expectations, as w ell 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 those anticipated in such statements. Accordingly, the reader should not
place any und ue 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.
Financial outlook information contained herein about the Company's prospective costs of production and sales
prices is based on assumptions about future events, as described above, based on management's
assessment of the relevant information currently available. The purpose of such financial outlook is to provide
information about management's current expectations as to the anticipated results of its proposed business
activities for the coming quarters . Readers are cautioned that any such financial outlook information contained
herein should not be used for purposes other than for which it is disclosed herein.
Rosario Project
The decision to commence production at the Rosario Project was not based on a feasibility study of mineral
reserves demonstrating economic and technical viability, but rather on a more preliminary est imate 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 the Veta Grande Project was not based on a feasibility study on
mineral reserves demonstrating economic and technical viab ility. 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.
Cinco Estrellas Property
The decision to commence production at the Cinco Estrellas Property 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.