Santacruz Closes Equity Financing and Completes Restructuring of Silver Pre-Payment Agreement

Santacruz Silver Mining (TSXV:SCZ) has reported that it has closed its previously announced public offering of units through a syndicate of agents led by Haywood Securities and M. Partners Inc., and has completed the restructuring of its Silver Pre-Payment Agreement with JMET, LLC.
As quoted in the press release:

The restructuring amends the Silver Pre-Payment Agreement such that, among other things, the Company no longer has any metal delivery obligations to JMET.
The Company has issued 37,975,000 units (the “Units“) pursuant to the Offering at a price of C$0.40 per Unit for total gross proceeds of C$15,190,000. The Offering included 4,875,000 Units issued pursuant to the Agents’ exercise in full of their option to purchase additional Units. Each Unit consisted of one common share and one-half of one transferable common share purchase warrant (each whole common share purchase warrant, a “Warrant“). Each Warrant entitles the holder to acquire one common share (a “Warrant Share“) at a price per Warrant Share of C$0.55 for a period of 30 months from closing.
The Company has used a portion of the net proceeds of the Offering to restructure its obligations to JMET, as described below, with the remainder to be used for general working capital purposes.
Concurrently with the completion of the Offering, the Company has closed the restructuring of its obligations to JMET by amending the terms of the Silver Pre-Payment Agreement. The Company has paid US$7,776,600 from the proceeds of the Offering to JMET as partial payment of the outstanding indebtedness under the Sliver Pre-Payment Agreement and has issued JMET a new secured note in the amount of US$4,889,933 (the “JMET Note“), representing the remaining indebtedness to JMET after giving effect to the restructuring. The JMET Note bears interest at a rate of 14% per annum, payable quarterly in arrears commencing September 30, 2016, with principal repayments of US$500,000 per quarter commencing September 30, 2017 and ending on December 31, 2019.

Click here to read the full press release.