Santacruz Silver Amends Agreement for Acquisition of Mexican Properties

Santacruz Silver Mining Ltd. (TSXV:SCZ) announced that Impulsora Minera Santacruz SA de CV, its subsidiary, has renegotiated the terms of its agreement to acquire the Mexico-based San Felipe project and adjacent El Gachi property. The agreement is with Minera Hochschild Mexico SA de CV.

As quoted in the press release:

Terms of the initial agreement with MHM dated August 3, 2011, as amended (see the Company’s press releases October 9, 2012, August 14, 2013 and also September 4, 2014), included upcoming payments of US$5,000,000 on or before December 1, 2015 and a final payment of US$14,000,000 on or before December 15, 2016 to acquire the San Felipe property and the El Gachi property and related milling equipment, buildings, land, and water rights as the main assets.

Under the terms of the most recently amended agreement (‘the Amending Agreement’), Impulsora can now acquire 100% of the San Felipe project and the El Gachi property, including all assets related to the properties, by making a payment of US$19,000,000 on or before December 1, 2016.

Arturo Prestamo, president of Santacruz, commented:

We thank Hochschild Mining for their support in amending the payment schedule in light of the challenges facing all mining companies in the current market environment. The flexibility created through the extension will allow us to further de-risk the San Felipe project through additional technical studies ultimately leading to a pre-feasibility study and the permits necessary for construction at San Felipe. Management believes the San Felipe project will become one of the premier assets in our portfolio in the near future.

Click here to read the full Santacruz Silver Mining Ltd. (TSXV:SCZ) press release.