Santacruz Silver Subsidiary Renegotiates San Felipe Agreement

Santacruz Silver Mining Ltd. (TSXV:SCZ) announced that Impulsora Minera Santacruz SA de CV, its subsidiary, has renegotiated the terms of its agreement to earn a 100-percent interest in 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:

Under the terms of this newly amended agreement (‘the Amending Agreement’), Impulsora can acquire 100% of the San Felipe project and the El Gachi property, including all assets related to the properties, by making the following payments:

a. US$2,000,000 on or before December 1, 2014;
b. US$5,000,000 on or before December 1, 2015;
c. US$14,000,000 on or before December 15, 2016; and

Pursuant to the Amending Agreement, in the event that the Company completes an equity offering of its securities in 2015, MHM is entitled to 30% of the net proceeds of the offering to a maximum of US$4,000,000, plus the US$5,000,000 referred to above. Any funds paid to MHM in excess of the US$5,000,000 would be applied against the outstanding balance of the December 2016 payment.

Arturo Prestamo, president of Santacruz, commented:

The terms of the Amending Agreement with Hochschild will provide the Company with added flexibility moving forward. With the imminent arrival of the San Felipe Project PEA and the continued improvement of operations at the Rosario Mine, the Company is building the necessary foundation to firmly establish itself as a mid-tier silver producer. The business relationship with Hochschild has been very beneficial to our Company and we greatly appreciate their willingness to cooperate with us as we execute our business plan.

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