Santacruz Silver Mining (SCZ-V) June 16, '16 reports that, in connection with its previously announced short form prospectus offering of units at a price of C$0.40 per Unit, it has amended its agreement with Haywood Securities Inc, on behalf of a syndicate including M Partners Inc. (collectively, the "Agents"), to increase the amount of the Offering from 26,500,000 Units to up to 32,500,000 Units for aggregate gross proceeds of up to $13,000,000.
The number of additional Units that may be acquired under the option granted to the Agents (the "Agents' Option") has also been increased from 3,975,000 Units to 4,875,000 Units for aggregate proceeds of up to $1,950,000. The Agents' Option is exercisable, in whole or in part by Haywood, on behalf of the Agents, giving notice to the Company at any time up to 48 hours prior to the closing date.
As previously disclosed, each Unit will consist of one common share of Santacruz (a "Common Share") and one-half of one transferable common share purchase warrant (each whole common share purchase warrant, a "Warrant"). Each Warrant will entitle the holder to acquire one Common Share (a "Warrant Share") at a price per Warrant Share of C$0.55 for a period of 30 months from the date of issuance.
The net proceeds of the Offering will be used by the Company to restructure the obligations owing by the Company under its current Pre-Paid Forward Silver Purchase Agreement with JMET LLC (the "Silver Prepayment Agreement") and for general working capital purposes.
Completion of the Offering is subject to certain conditions, including the receipt of all necessary regulatory approvals, including the approval of the TSX Venture Exchange, and the closing by the Company of the proposed Silver Prepayment Agreement restructuring.
About Santacruz Silver Mining Ltd.
Santacruz is a Mexican focused silver company with a producing silver mine (Rosario); the right to operate a silver mine and mill facility (Veta Grande); an advanced-stage project (San Felipe); one exploration stage project (the Gavilanes property) and three early stage exploration properties including the El Gachi property, the Minillas property and the Zacatecas properties. The Company is managed by a technical team of professionals with proven track records in developing, operating and discovering silver mines in Mexico. Our corporate objective is to become a mid-tier silver producer.
'signed'
Arturo Préstamo Elizondo,
President, Chief Executive Officer and Director
SOURCE SantaCruz Silver Mining Ltd.
Neil MacRae,
Santacruz Silver Mining Ltd.,
Email: info@santacruzsilver.com ,
Telephone: (604) 569-1609 |
