Business
Santacruz Silver Mining Ltd. Announces Settlement of Debts with Third Party Creditors
Vancouver, British Columbia--(Newsfile Corp. - June 7, 2021) - Santacruz Silver Mining Ltd. (...
About this update from Santacruz Silver Mining Ltd.
[{"type":"text","content":"Santacruz Silver Mining Ltd. Announces Settlement of Debts with Third Party CreditorsVancouver, British Columbia--(Newsfile Corp. - June 7, 2021) - Santacruz Silver Mining Ltd. (TSXV: SCZ) (FSE: 1SZ) (\"Santacruz\", or the \"Company\") announces that it intends to issue an aggregate of 10,342,604 common shares of the Company at a price of $0.432 per share in settlement of outstanding debts totalling C$4,468,005 (the \"Debt Settlements\"). Pursuant to the terms of a debt settlement agreement dated as of the date hereof, the Company has agreed to issue 9,907,530 common shares of the Company (the \"Manquiri Settlement Shares\") in settlement of outstanding debts totaling C$4,280,053 (US$3,545,438) (the \"Manquiri Debt\") owing to Empresa Minera Manquiri, S.A. (\"Manquiri\"). The Manquiri Debt was accrued pursuant to a loan agreement dated March 6, 2018, among Impulsora Minera Santacruz, S.A. de C.V. (the \"Borrower\"), a wholly owned subsidiary of the Company, the Company, as guarantor, and Manquiri, as amended by a first amendment agreement dated July 2, 2018, as amended by a second amendment agreement dated October 2, 2018 and further amended by a third amendment agreement dated January 30, 2020 (together, the \"Loan Agreement\"). Pursuant to the Loan Agreement, Manquiri advanced to the Borrower the sum of US$2,300,000 (the \"Manquiri Loan\") that accrued interest at the rate of 9% per annum, which was subsequently amended to 12% per annum. The Manquiri Loan had a maturity date of March 31, 2021; however, pursuant to a debt acknowledgement and obligation of payment agreement dated April 21, 2021, the parties agreed to settle the Manquiri Debt by July 21, 2021.Pursuant to a debt NSR settlement agreement dated as of the date hereof, the Company has also agreed to issue 435,074 common shares of the Company (the \"Güilloyna Settlement Shares\" together with the Manquiri Settlement Shares, the \"Settlement Shares\") in settlement of outstanding debts totaling CAD$187,952 (USD$156,000) (the \"Güilloyna Debt\") owing to Minas Güilloyna, S.A. de C.V. (\"Güilloyna\"). The Güilloyna Debt was accrued pursuant to a Net Smelter Returns Agreement dated September 19, 2014 (the \"NSR Agreement\") among the Borrower, the Company, as guarantor, and Güilloyna, that was entered into in connection with the Company's acqu...