Santacruz Silver Closes $28.4 Million Funding

Santacruz Silver (TSXV:SCZ) announced it has closed a USD $28.4 million pre-paid silver purchase agreement with JMET, LLC. The funds will be used to advance the company’s San Felipe project in Mexico, with the goal of being in a position to make a decision on construction on the property by the first quarter of 2015.

According to the press release:

Pursuant to the terms of the Agreement, the Company has agreed to sell 4,635,000 ounces of silver through August 2019, subject to certain adjustments relating to metal prices. 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. Under the Agreement, the Company always maintains the upside on the silver and all metal prices.

With the closing of this funding now completed, the Company intends to advance the development of the San Felipe project with the expectation of being in position to take a construction decision by the end of Q1 2015. The Company recently announced a Preliminary Economic Assessment on the San Felipe Project with robust economics.

Arthur Préstamo, President of Santacruz, said:

Given the very difficult market conditions we are currently experiencing, we are very pleased to have entered into the Agreement which will allow us to continue with our plans to create a mid-tier silver producer in Mexico.

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