Business
Santacruz Silver Enters Definitive Agreement to Acquire the Zimapan Mine and Arranges Financing For Transaction
Vancouver, British Columbia--(Newsfile Corp. - February 25, 2021) - Santacruz Silver Mining...
About this update from Santacruz Silver Mining Ltd.
[{"type":"text","content":"Santacruz Silver Enters Definitive Agreement to Acquire the Zimapan Mine and Arranges Financing For TransactionVancouver, British Columbia--(Newsfile Corp. - February 25, 2021) - Santacruz Silver Mining Ltd. (TSXV: SCZ) (OTC: SZSMF) (FSE: 1SZ) (the \"Company\" or \"Santacruz\") reports that its wholly-owned subsidiary, Carrizal Mining S.A. de C.V. (\"Carrizal\"), has entered into a definitive agreement (the \"P&S 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 (the \"Acquisition\") the Zimapan property and related assets (the \"Zimapan Mine\") located in Zimapan, Hidalgo State, Mexico for total consideration of US$20 million (plus applicable Mexican Value Added Tax of US$3.2 million) (the \"Purchase Price\"). The P&S Agreement supersedes the term sheet previously entered into by the parties.The Acquisition remains subject to a number of conditions, including receipt of all necessary regulatory approvals including approval of the TSX Venture Exchange (\"TSXV\"), as the Acquisition constitutes a \"Fundamental Acquisition\" pursuant to TSXV Policy 5.3.Assets to be acquired pursuant to the Acquisition include:Zimapan processing facility with a capacity of 75,000 dry metric tonnes per month and zinc, lead and copper circuits. Surface and underground infrastructure including electrical and other necessary infrastructure required for day-to-day operations.34 mining concessions covering an area of 5,139 hectares, including the highly prospective 337-hectare Santa Gorgonia 1 concession. The mining concessions are all located proximate to the municipality of Zimapan. To date, Carrizal has identified 14 mineral zones that are characterized as polymetallic replacement mineralization of Pliocene age. Within the mineral zones, silver, lead, zinc and copper minerals have preferentially replaced the carbonate host rocks and pre-existing skarn bodies to produce disseminated, semi-massive sulphide and massive sulphide bodies that occur in proximity to monzonitic intrusions and quartz-feldspar porphyry dikes.The Company previously filed an independent technical report relating to the Zimapan Mine dated August 5, 2020 titled \"Technical Report Zimapan Property Hidalgo Mexico\" under National Instrument 43-101 Standards of Disclosure for Miner...