Vancouver, B.C. – Santacruz Silver Mining Ltd. ("Santacruz" or the "Company") (TSX.V:SCZ) is pleased to announce that it has entered into a US$28.4 million Pre-paid Silver Purchase Agreement with JMET, LLC to sell 4,635,000 ounces of silver through August 2019, subject to certain adjustments relating to metal prices. In addition to US$ 28.4 million that will be paid to the Company up front upon satisfaction of certain conditions, at the time of each delivery the Company will receive an amount per ounce of silver equal to the market price at the time, less a fixed discount. It is anticipated that the upfront payment will be advanced within the next two weeks. Under the agreement, the Company maintains the upside on the silver price.

The main purpose of the agreement is to fund the Company's future plans, including the development of the Company's second project, San Felipe, in Sonora State, Mexico.

Key aspects of the Pre-paid Forward Silver Purchase Agreement:

  • 5-year tenor
  • No ounces will be delivered over the first 12 months followed by deliveries of 7,500 oz of silver per month for 18 months and 150,000 oz of silver per month for 30 months
  • Attractive cost of capital
  • Santacruz Silver maintains 100% upside on silver and all metal prices
  • No warrants, shares or options are being issued in connection with the agreement
  • Pledging of the Company's assets as security for the up-front payment

President Arturo Préstamo stated, "We are very pleased to have entered into this contract. The funding allows us to continue our plans to advance the San Felipe project in a non-dilutive way, under a flexible and favorable financial structure while at the same time maintaining the upside on the price of silver. With the Rosario Mine starting to hit its targets, robust economics at our San Felipe project, and this non-dilutive financing now in place, we are well positioned to take the next step in becoming a mid-tier silver producer. Our approach has always been and will continue to be about creating strong cash-flow producing operating mines. That is always the key driver behind our decisions and we strive to deliver for our shareholders on those objectives in the shortest time frame possible."

About Santacruz Silver Mining Ltd. 

Santacruz is a Mexican-focused silver company with a producing mine (Rosario); two advanced-stage projects (San Felipe and Gavilanes) and an early-stage exploration project (El Gachi). 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.

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 levels, grades, mine and mill development, mill recovery rates and the acquisition of mineralized material from third parties, 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 certain factors and assumptions, including, that the Company's financial condition and development plans do not change as a result of unforeseen events, that the Company obtains regulatory approval, that the Company is able to obtain material from third parties on reasonable terms, future metal prices and the demand and market outlook for metals. 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, that occurrences such as those referred to above are realized and result in delays, or cessation in planned work, that the Company's financial condition and development plans change, delays in regulatory approval, risks associated with the interpretation of data, 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 Annual Information Form 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.