Santacruz Silver Signs Letter of Intent to Sell Gavilanes Project for US$3.5 Million

Santacruz Silver Mining (TSX.V:SCZ) (“Santacruz” or the “Company”) announces that it has signed a letter of intent (“LOI”) to sell its interest in the Gavilanes Project in Durango, Mexico to an arm’s length third party gold and silver producer (the “Purchaser”). The LOI contemplates the sale to the Purchaser of 100% of the Company’s interest in the Gavilanes Project for US$3.5 million plus applicable value added tax.
Gavilanes is located approximately 110km WNW of Durango City in the municipality of San Dimas in Durango State, Mexico. The property is located within the central part of the Sierra Madre Occidental and includes 10 mining concessions covering a total area of 8,832 hectares.
Arturo Préstamo, President and CEO of Santacruz, said:

“Continuing with our plan to focus on our producing assets within the Company, management has made the decision to divest the Gavilanes Project. The Company is transitioning into a multi-mine Mexican silver producer that we expect will generate solid cash flow as we grow.
The monetization of Gavilanes would allow us to further improve our operations on the Company’s two producing assets, and, once completed, will serve to fulfill the remaining obligations under the JMET, LLC facility, thereby unencumbering the Company’s assets.”

The LOI is non-binding and the transaction is subject to, among other things, the parties entering into a definitive agreement which will contain customary terms and conditions for a transaction of this nature.  The transaction is expected to close on or before August 15, 2017.
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