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Santacruz Silver Announces Agreement to Sell San Felipe Project
Santacruz Silver Announces Agreement to Sell San Felipe Project Santacruz Silver A...
About this update from Santacruz Silver Mining Ltd.
[{"type":"text","content":"\n\n\n\nSantacruz Silver Announces Agreement to Sell San Felipe Project\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\nSantacruz Silver Announces Agreement to Sell San Felipe Project\nCanada NewsWire\nVANCOUVER, Dec. 7, 2016\n\n\n\nTSX.V: SCZFSE: 1SZ\n\n\n\nVANCOUVER, Dec. 7, 2016 /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 with a private Mexican company based in Hermosillo, Mexico (the \"Hermosillo Group)\" to sell 100% of its interest in the San Felipe Project located in Sonora, Mexico to the Hermosillo Group for cash consideration of US$15.0 million (plus value added tax (\"VAT\") of US$2.4 million) (the \"Transaction\").  The Transaction is scheduled to close on or about December 19, 2016. \n\nKey features of the Transaction:\n\n\nHermosillo Group to pay US$15.0 million plus VAT in cash to the Company in three tranches in exchange for 100% of the Company's interest in the San Felipe Project;\nFrom the proceeds of the Transaction the Company will pay US$10.0 million cash (plus VAT) to Minera Hochschild Mexico, S.A. de C.V. (\"MHM\"), the underlying property vendor, and will issue to MHM 13,415,000 common shares of Santacruz as full and final payment for 100% of the San Felipe Project free of all encumbrances and the El Gachi Property;\nThe payment schedule for the US$15.0 million plus VAT amount is as follows:\n\nUS$3 million to be paid on or before December 9, 2016; \nUS$12 million to be paid on or before December 19, 2016; and \nUS$2.4 million to be paid on or before February 15, 2017.\n\nUpon completion of the Transaction the Company will retain US$5.0 million in cash and will own 100% of the El Gachi Property.  From these proceeds the Company will pay approximately US$2.0 million to JMET, LLC to reduce the Company's indebtedness to JMET, LLC while the residual balance is to be used by Santacruz for general working capital purposes.\n\n\"Our divestment of the San Felipe Project is...