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Santacruz Silver Mining Ltd. (TSXV:SCZ) announced that it has entered into a US$28.4 million prepaid silver purchase agreement with JMET, LLC. Santacruz will sell 4,635,000 ounces of silver through August 2019, with proceeds funding the company’s future plans.
Santacruz Silver Mining Ltd. (TSXV:SCZ) announced that it has entered into a US$28.4 million prepaid silver purchase agreement with JMET, LLC. Santacruz will sell 4,635,000 ounces of silver through August 2019, with proceeds funding the company’s future plans.
According to the press release:
In addition to US$ 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.
Arturo Prestamo, president of Santacruz, said:
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.
Click here to read the Santacruz Silver Mining Ltd. (TSXV:SCZ) press release.