Santacruz Provides Update on Zimapan Mine Acquisition and Related Debt Financing, and Private Placement with Master Order from Palisades Goldcorp


Vancouver, British Columbia – (Newsfile Corp. – April 6, 2021) – Santacruz Silver Mining Ltd. (TSXV: SCZ) (FSE: 1SZ) (the “Society” Where “Santa Cruz“) announces that the acquisition of the Zimapan mining assets from Minera Cedros, SA de CV (” Minera Cedros “), as well as the US $ 17.6 million loan facility from Trafigura Mexico, SA de CV (the” Trafigura Loan Facility “), are now expected to close no later than April 16, 2021. These transactions were last described in the Company’s press release dated February 25, 2021.

Under the terms of the definitive purchase agreement dated February 24, 2021 (the “Purchase Agreement”) between the Company’s wholly-owned subsidiary, Carrizal Mining SA de CV (“Carrizal”), and Minera Cedros, entering into the The acquisition of the Zimapan mine, including the payment by Carrizal of US $ 15 million of the purchase price, must take place within 60 days of the date of the purchase contract, ie April 26, 2021. The payment of US $ 15 million will be financed by the Trafigura loan facility. The balance of the purchase price of US $ 20 million (plus applicable Mexican value-added tax of US $ 3.2 million) for the Zimapan mine of US $ 8.2 million is payable to Minera Cedros within 5 months of closing in accordance with the purchase contract.

The previously announced private placement of up to 47,000,000 units of the Company at a price of C $ 0.30 per unit to raise gross proceeds of up to C $ 14,100,000 with a main order from Palisades Goldcorp ( see press release dated March 18, 2021) and is expected to close in one or more installments on or around April 9, 2021.

About Santacruz Silver Mining Ltd.

Santacruz is a Mexican silver company that currently owns and operates the Rosario Project. The Company also owns 100% of Carrizal Mining SA de CV On February 25, 2021, the Company announced that it had entered into a definitive agreement with Minera Cedros, SA de CV (“Minera Cedros“), a wholly owned subsidiary of Industrias Peñoles, SAB de CV, to acquire the Zimapan mine and all assets related to the Zimapan mine and mill for US $ 20.0 million (plus IVA applicable amount of US $ 3.2 million), subject to a number of conditions, including receipt of all necessary regulatory approvals, including the approval of the TSX Venture Exchange (“TSXV“) the transaction which will constitute a” fundamental acquisition “in accordance with TSXV policy 5.3.

The Company is managed by a technical team of professionals with a proven track record in the development, operation and discovery of silver mines in Mexico. Our business goal is to become a mid-level silver producer.

About Palissades Goldcorp

Palisades Goldcorp is Canada’s resource-based investment bank. The Palisades management team has a proven track record of making money and is backed by many of the industry’s most trusted financiers. With junior resource stocks valued at their lowest generational level, management believes the sector is on the cusp of a major market bullish move. Palisades positions itself with significant holdings in companies and undervalued assets with the aim of generating superior returns.


Arturo Prestamo Elizondo,
Executive chairman

For more 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 press release constitute “forward-looking information” as that term is used in applicable Canadian securities laws, including statements relating to the completion of the acquisition of the Zimapan mine by the Company. and related financing operations. Forward-looking information is based on management’s plans, expectations and estimates at the date the information is provided and is subject to certain factors and assumptions. In making the forward-looking statements included in this press release, the Company has applied several important assumptions, including that the financial position and development plans of the Company do not change due to unforeseen events, that the Company will receive all approvals regulatory requirements and that future metal prices and the demand and market outlook for metals will remain stable or improve. Forward-looking information is subject to various risks and uncertainties and other factors that could cause actual plans, estimates and results to differ materially from those projected in such forward-looking information. Factors that could cause any forward-looking information contained in this press release to change or be inaccurate include, without limitation, unforeseen delays in obtaining or failure to obtain regulatory or market approvals; the risk that one of the assumptions referred to above proves to be invalid or reliable; market conditions and volatility and global economic conditions, including increased volatility and potentially negative capital raising conditions resulting from the continuing COVID-19 pandemic and risks related to the extent and duration this pandemic and its impact on global markets; risk of delay and / or stoppage of planned work or change in the financial situation and development plans of the Company; risks associated with the interpretation of data (including with respect to third party mineralized material) regarding the geology, grade and continuity of mineral deposits; the uncertainty of the geology, grade and continuity of mineral deposits and the risk of unexpected variations in mineral resources, grade and / or recovery rates; risks associated with fluctuations in the prices of gold, silver, base metals and other commodities; risks related to environmental regulations and liability; the possibility that the results will not be in line with the Company’s expectations, as well as other risks and uncertainties applicable to mining exploration and development activities and to the Company, as indicated in the continuous disclosure documents of the Company filed under the Company profile at There can be no assurance that forward-looking information will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Therefore, the reader should not place undue reliance on forward-looking information or statements. The Company assumes no obligation to update any forward-looking information or statements, except as required by applicable law.

To view the source version of this press release, please visit

Leave A Reply

Your email address will not be published.