TSX.V: SCZ
FSE: 1SZ
VANCOUVER, June 30, 2017 /CNW/ - Santacruz Silver
Mining Ltd. (TSX.V:SCZ) ("Santacruz" or the "Company")
announces that it has signed a letter of intent ("LOI") to sell its
interest in the Gavilanes Project in Durango, Mexico to an arm's length third party
gold and silver producer (the "Purchaser"). The LOI
contemplates the sale to the Purchaser of 100% of the Company's
interest in the Gavilanes Project for US$3.5
million plus applicable value added tax.
Gavilanes is located
approximately 110km WNW of Durango City in the municipality of
San Dimas in Durango State,
Mexico. The property is located
within the central part of the Sierra Madre Occidental and includes
10 mining concessions covering a total area of 8,832 hectares.
"Continuing with our plan to focus on our producing assets
within the Company, management has made the decision to divest the
Gavilanes Project," stated Arturo Préstamo, President and CEO of
Santacruz. "The Company is transitioning into a multi-mine
Mexican silver producer that we expect will generate solid cash
flow as we grow. The monetization of Gavilanes would allow us to further improve
our operations on the Company's two producing assets, and, once
completed, will serve to fulfill the remaining obligations under
the JMET, LLC facility, thereby unencumbering the Company's
assets."
The LOI is non-binding and the transaction is subject to, among
other things, the parties entering into a definitive agreement
which will contain customary terms and conditions for a transaction
of this nature. The transaction is expected to close on or
before August 15, 2017.
About Santacruz Silver Mining Ltd.
Santacruz is a Mexican focused silver company with two producing
silver projects (Rosario Project, including the Rosario Mine,
Cinco Estrellas property and
Membrillo vein, and the right to operate the Veta Grande project and milling facility); and
two exploration properties, 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.
'signed'
Arturo Préstamo Elizondo,
President, Chief Executive Officer and Director
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. Forward-looking information includes, but
is not limited to, the anticipated fulfillment of the Company's
remaining obligations under the JMET, LLC facility and 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, the
assumptions 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 third
party consents to the transaction; that the parties will enter into
a definitive agreement in a timely manner; that all conditions
precedent to the transaction (including those contained in the
definitive agreement) will be fulfilled in a timely manner; 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; delays
in regulatory approval, receipt of third party consents and/or
satisfaction of conditions precedent to completion of the
transaction, 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 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 Vein were not based on a
feasibility study of mineral reserves demonstrating economic and
technical viability, 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 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.
SOURCE SantaCruz Silver Mining Ltd.