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Santacruz Silver Announces Agreement to Assign San Felipe Project to Americas Silver Corporation
Santacruz Silver Announces Agreement to Assign San Felipe Project to Americas Silver Corpo...
About this update from Santacruz Silver Mining Ltd.
[{"type":"text","content":"\n\n\n\nSantacruz Silver Announces Agreement to Assign San Felipe Project to Americas Silver Corporation\n\n/* Style Definitions */\nspan.prnews_span\n{\nfont-size:8pt;\nfont-family:\"Arial\";\ncolor:black;\n}\na.prnews_a\n{\ncolor:blue;\n}\nli.prnews_li\n{\nfont-size:8pt;\nfont-family:\"Arial\";\ncolor:black;\n}\np.prnews_p\n{\nfont-size:0.62em;\nfont-family:\"Arial\";\ncolor:black;\nmargin:0in;\n}\n\n\n\n\n\n\n\nCanada NewsWire\nVANCOUVER, March 2, 2017\n\n\n\nTSX.V: SCZ FSE: 1SZ\n\n\n\nVANCOUVER, March 2, 2017 /CNW/ - Santacruz Silver Mining Ltd. (TSX.V:SCZ) (\"Santacruz\") reports 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\") with Americas Silver Corporation (\"Americas Silver\") to assign 100% of its interest in the San Felipe Project located in Sonora, Mexico to Americas Silver for US$7 million plus VAT paid on execution of the Agreement, comprised of US$5.0 million plus VAT to the Company and US$2.0 million plus VAT to Minera Hochschild Mexico, S.A. de C.V., the underlying property vendor.  These amounts were paid on March 2, 2017.\n\nFrom the proceeds of US$5.0 million plus VAT received by the Company, US$4.25 million has been paid to JMET, LLC (\"JMET\"), substantially reducing the amount outstanding on the promissory note held by JMET (the \"JMET Note\") to approximately US$0.75 million.  Upon closing of the El Gachi transaction with First Majestic Silver Corp. previously announced on February 24, 2017, the residual balance on the JMET Note of U$0.75 million will be repaid in full with US$1.5 million in restructuring fees remaining outstanding.\n\n\"We are pleased to have executed on our two-fold plan to divest these non-core assets and to improve our balance sheet through the elimination of the principal amount outstanding on our JMET Note. Santacruz is first and foremost a silver producer, and we look forward to increasing production at our Veta Grande and Rosario operations,\" stated Arturo Prestamo, President and CEO.\n\nIn consideration for the financial advisory services rendered by Haywood Securities Inc. (\"Haywood\") in connection with the transaction, Santacruz has agreed to pay Haywood an advisory fee, of which Santacruz may elect to pay in full through the issuance of 390,...