Santacruz Silver Mining (TSX.V:SCZ) (“Santacruz”) announces, further to its news release of August 8, 2017, that it has settled the outstanding balance owing on certain of the claims included in the Gavilanes Project (the “Gavilanes Outstanding Balance”) by making a cash payment of US$500,000 and issuing 1,250,000 common shares of Santacruz, plus applicable value added taxes (“VAT”), to the property vendor.
The shares are subject to a hold period and may not be traded until December 11, 2017 except as permitted by applicable securities legislation and the rules and policies of the TSX Venture Exchange.
Marlin Gold Mining (“Marlin”) provided US$580,000 as a refundable deposit (the “Deposit”) to fund the cash portion of the Gavilanes Outstanding Balance in accordance with the terms of the definitive agreement between Marlin, Santacruz and their respective subsidiaries (see news release dated August 8, 2017).
Pursuant to such agreement, Marlin, through its wholly-owned subsidiary, will acquire 100% of Santacruz’s interest in the Gavilanes Project in Durango, Mexico (the “Gavilanes Transaction”), for total cash consideration of US$3.5 million, plus applicable VAT.
On closing of the Gavilanes Transaction, the Deposit will be deducted from the purchase price otherwise payable by Marlin. The Gavilanes Transaction is expected to close in August 2017.