Business
Santacruz to Acquire Glencore's Producing Silver Mines in Bolivia Creating a New Significant Latin American based Silver Producer
Vancouver, British Columbia--(Newsfile Corp. - October 13, 2021) - Santacruz Silver Mining Lt...
About this update from Santacruz Silver Mining Ltd.
[{"type":"text","content":"Santacruz to Acquire Glencore's Producing Silver Mines in Bolivia Creating a New Significant Latin American based Silver ProducerVancouver, British Columbia--(Newsfile Corp. - October 13, 2021) - Santacruz Silver Mining Ltd. (TSXV: SCZ) (the \"Company\" or \"Santacruz\") announces that it has entered into a definitive share purchase agreement (the \"Agreement\") with Glencore whereby Santacruz will acquire a portfolio of Bolivian silver assets from Glencore (the \"Transaction\"), including a 45% interest in the producing Bolivar and Porco mining operations held through an unincorporated joint venture with Corporación Minera de Bolivia (\"COMIBOL\"), a Bolivian state-owned entity, (the \"Illapa JV\"), a 100% interest in the Sinchi Wayra business which includes the producing Caballo Blanco mining complex (\"Caballo Blanco\"), the Sorocaya project located in Bolivia (\"Soracaya\") and the San Lucas ore sourcing and trading business (\"San Lucas\") and certain related properties and assets (together, the \"Assets\"). Pursuant to the Agreement, Santacruz will pay initial upfront consideration of US$20 million (subject to customary working capital adjustments), and an additional US$90MM is payable in equal installments over four years from the closing of the Transaction, subject to certain conditions and adjustments. In addition, Glencore will also be granted a 1.5% net smelter returns royalty on the Assets.Key Transaction HighlightsCreation of a significant Americas-focused silver producer approaching senior status, with additional significant leverage to the zinc market Diversifies production across a robust portfolio of producing mines and creates a platform for future growthAssets include five producing mines, two exploration projects, three milling facilities, one trading company and two power plants (thermo and hydroelectric) among the most relevantFor the nine months ended September 30, 2021, the Assets produced 6.4MM oz Ag Eq[1] (100% basis)Immediately accretive to cash flow and all key metricsMajority of consideration deferred and to be funded by cash flows resulting in limited upfront dilution compared to an all-share transactionArturo Préstamo Elizondo, Executive Chairman and Interim CFO of Santacruz, commented: \"This is a transformational acquisition that creates a leading mid-tier silver producer in the America...