News out Vancouver, British Columbia--(Newsfile Corp. - July 23, 2020) - Santacruz Silver Mining Ltd.(TSXV: SCZ) ("Santacruz" or the "Company") is pleased to announce that it has entered into an agreement with Zacatecas Silver Corp. ("Zacatecas Silver") for the sale of a 100% interest in the Zacatecas Properties (the "Properties"), located in the Zacatecas Mining District, Mexico, for consideration of US $1.5 million and the issuance of 5,000,000 common shares of Zacatecas Silver.
Zacatecas Silver is a privately held silver focused exploration company, headed by Bryan Slusarchuk and financially backed by industry leading mining operators and financiers.
- The Zacatecas Properties comprise 149 mining concessions totaling approximately 7,826 ha (19,338 acres), and are located on the highly prospective Fresnillo Silver Belt, which has produced over 6.2 billion ounces of silver.
- The Properties include the Panuco Deposit, which has an inferred mineral resource of 19,472,901 ounces from 3,954,729 tonnes at 153.2 g/t Ag Eq with significant resource expansion potential and high-grade silver exploration upside (see news release dated August 29, 2019). Mineralization at the Panuco Deposit remains open along strike and down dip.
- The Zacatecas Properties are located 25 km south-east of MAG Silver Corp.'s Juanicipio Mine and Fresnillo PLC's Fresnillo Mine and in close proximity to Pan American Silver Corp. claims and El Orito from Endeavour Silver.
Santacruz Silver CEO, Carlos A. Silva states, "Santacruz is very pleased to have attracted Bryan Slusarchuk and the Zacatecas Silver team to the Properties. While we identified the potential and acquired the Properties during the downturn in the silver cycle we are now pleased to vend these Properties to an experienced team that can advance the Properties and maximize shareholder value in current market conditions. By transacting with Zacatecas Silver, we anticipate that the Properties will be very well funded and aggressively drilled. Any future success realized by Zacatecas Silver will in turn benefit Santacruz and its shareholders due to Santacurz's equity interest post transaction."
Zacatecas Silver CEO, Bryan Slusarchuk states, "We are big believers that macro conditions for silver have never been better. It is also undisputable that Zacatecas is one of the world's best addresses for high grade silver. To acquire a project with historic high-grade intercepts, an inferred mineral resource with expansion and exploration upside is very timely. Our team has created significant shareholder value for precious metals investors during the bear market and now with a precious metals bull starting, we are ideally positioned in terms of technical expertise and capital markets ability to continue delivering excellent potential upside going forward."
Terms of Transaction
Under the terms of the transaction, the Company will sell a 100% interest in the Zacatecas Property for $1.5 million (of which US $500,000 will be paid on listing of Zacatecas, US $500,000 on the first anniversary of listing and a final US $500,000 on the second anniversary of listing) and 5,000,000 common shares of Zacatecas. Zacatecas has also agreed to complete a financing of $5,000,000 for the purpose of exploration of the Zacatecas Properties and to obtain a listing of its common shares on the TSX Venture Exchange by December 31, 2020.