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Santacruz Provides Update on Zimapan Mine Acquisition and Related Debt Financing, and Private Placement With A Lead Order From Palisades Goldcorp
Vancouver, British Columbia--(Newsfile Corp. - April 6, 2021) - Santacruz Silver Mining Ltd. ...
About this update from Santacruz Silver Mining Ltd.
[{"type":"text","content":"Santacruz Provides Update on Zimapan Mine Acquisition and Related Debt Financing, and Private Placement With A Lead Order From Palisades GoldcorpVancouver, British Columbia--(Newsfile Corp. - April 6, 2021) - Santacruz Silver Mining Ltd. (TSXV: SCZ) (FSE: 1SZ) (the \"Company\" or \"Santacruz\") announces that the acquisition of the Zimapan mine assets from Minera Cedros, S.A. de C.V. (\"Minera Cedros\"), together with the US$17.6 million loan facility from Trafigura Mexico, S.A. de C.V. (the \"Trafigura Loan Facility\"), are now expected to close on or before April 16, 2021. These transactions were last described in the Company's news release dated February 25, 2021.Pursuant to the definitive purchase agreement dated February 24, 2021 (the \"Purchase Agreement\") between the Company's wholly-owned subsidiary, Carrizal Mining S.A. de C.V. (\"Carrizal\"), and Minera Cedros, closing of the acquisition of the Zimapan mine, including payment by Carrizal of US$15 million of the purchase price, is required to occur within 60 days of the date of the Purchase Agreement, being April 26, 2021. The US$15 million payment will be funded by the Trafigura Loan Facility. The balance of the US$20 million (plus applicable Mexican Value Added Tax of US$3.2 million) purchase price for the Zimapan mine, being US$8.2 million, is payable to Minera Cedros within 5 months of closing in accordance with the Purchase Agreement.The previously announced private placement of up to 47,000,000 units of the Company at a price of CDN$0.30 per unit to raise gross proceeds of up to CDN$14,100,000 with a lead order from Palisades Goldcorp (refer to the news release dated March 18, 2021) is expected to close in one or more tranches on or about April 9, 2021.About Santacruz Silver Mining Ltd. Santacruz is a Mexican focused silver company that currently owns and operates the Rosario Project. The Company also owns 100% of Carrizal Mining S.A. de C.V. On February 25, 2021 the Company announced that it had entered into a definitive agreement with Minera Cedros, S.A. de C.V. (\"Minera Cedros\"), a wholly owned subsidiary of Industrias Peñoles, S.A.B. de C.V., to acquire outright the Zimapan Mine and all assets related to the Zimapan mine and mill for US$20.0 million (plus applicable IVA of US$3.2 million), subject to a number of conditions, including receipt of al...