Santacruz Silver Mining (SCZ-V) Sept 7, '16 announced today that its wholly-owned subsidiary, Impulsora Minera Santacruz S.A. de C.V. (together with Santacruz the "Company"), has entered into an agreement (the "Agreement") pursuant to which the Company has acquired the exclusive right for 15 years (the "Exclusive Mining Right") to explore, develop and mine the Cinco Estrellas gold-silver property (the "Property") situated approximately 40 km from the Company's Rosario Mine located near Charcas, San Luis Potosi, Mexico. The Property covers approximately 400 hectares in total and includes vein systems that have had prior mining activity conducted on them.
As consideration for being granted the Exclusive Mining Right, the Company has agreed to pay the Property vendor a 2.5% net smelter returns royalty on any mineralized material from the Property that is mined and milled or otherwise treated for the eventual sale of the contained metal. In addition, the Company has agreed to make the following cash payments: US$50,000 on signing (paid), US$5,000 per month for the first six months, and US$50,000 on the 90th day after entering into the Agreement.
The Company plans to immediately begin mining activities on the Property with the expectation that it will begin shipping mineralized material from the Property to its Rosario Mine milling facility in the fourth quarter in order to utilize some of the available capacity. Management expects that this will allow the Company to realize economies of scale at the Rosario Mine operations, as well as provide a more flexible operations plan by virtue of having multiple diversified sources of mineralized material for the milling facility.
"The Property is located in very close proximity to the Rosario Mine and the Company has successfully milled mineralized material from the Property at the Rosario Mine milling facility in prior years," said Arturo Préstamo, President and CEO of Santacruz. "Entering the Agreement was a logical strategic step for the Company to take as the initial capital expenditures required to produce mineralized material from the Property are anticipated to be modest, while simultaneously making use of excess capacity at the Rosario Mine milling facility."
The technical information contained in this news release has been reviewed and approved by Van Phu Bui, B.Sc., P. Geo., who is independent of the Company and a "qualified person" under National Instrument 43-101.
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) and four exploration properties including the Gavilanes property, El Gachi property, Minillas property and 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
For further information please contact:
Neil MacRae
Santacruz Silver Mining Ltd.
Email: info@santacruzsilver.com
Telephone: (604) 569-1609 |
