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Santacruz Silver Confirms Earn-In by Carrizal Mining of 20% Interest in Santacruz's Veta Grande Project and Agrees to Acquire Carrizal Mining
Vancouver, British Columbia--(Newsfile Corp. - May 22, 2019) - Santacruz Silver Mining Ltd. (...
About this update from Santacruz Silver Mining Ltd.
[{"type":"text","content":"Santacruz Silver Confirms Earn-In by Carrizal Mining of 20% Interest in Santacruz's Veta Grande Project and Agrees to Acquire Carrizal MiningVancouver, British Columbia--(Newsfile Corp. - May 22, 2019) - Santacruz Silver Mining Ltd. (TSXV: SCZ) (the \"Company\" or \"Santacruz\") announces that Carrizal Mining, S.A. de C.V. (\"Carrizal\"), a private Mexican mining company, has earned a 20% working interest in Santacruz's Veta Grande Project pursuant to the terms of an agreement dated November 30, 2017 (see press release dated December 14, 2017).Further, the Company has entered into separate agreements, with binding effect as of May 21, 2019, to acquire 100% of the outstanding shares of PCG Mining, S.A. de C.V. (\"PCG\") which is a holding company that owns 100% of Carrizal's outstanding shares. The shares of PCG are owned as to 50% each by two unrelated shareholders. One of the shareholders is at arm's-length to Santacruz and the other shareholder is Carlos Silva, Santacruz's COO. Consideration for the acquisition is as follows:With respect to the acquisition of PCG shares from the arm's-length party (the \"Arm's Length Acquisition\"), on closing a cash payment by Santacruz of US$500,000 and other consideration in the amount of approximately US$600,000, including the forgiveness of approximately US$450,000 in debt owed by the shareholder to Carrizal; andWith respect the acquisition of PCG shares from Carlos Silva (the \"Silva Acquisition\", and together with the Arm's Length Acquisition, the \"Transaction\"), on closing the issuance of 30,000,000 shares of Santacruz (the \"Consideration Shares\") to Mr. Silva at a deemed price of CDN$0.05 per share. Completion of the Transaction is subject to receipt of all necessary regulatory approvals, including the approval of the TSX Venture Exchange (the \"Exchange\"). The Transaction is considered a \"Reviewable Transaction\" as defined in Exchange Policy 5.3. The Company plans to complete the Arm's Length Acquisition, and thereby initially acquire 50% of PCG, immediately upon receipt of Exchange approval. The Silva Acquisition will be subject to the Company obtaining approval from the disinterested shareholders of the Company pursuant to Exchange requirements, since the Consideration Shares will represent more than 10% of the Company's outstanding shares prior to closing. Carlos Silva doe...