Santacruz Silver produces 977,679 oz AgEq in Q3 2020
Santacruz Silver produces 977,679 oz AgEq in Q3 2020
2020-10-26 09:48 ET - News Release
Mr. Carlos Silva reports
SANTACRUZ SILVER PRODUCES 977,679 SILVER EQUIVALENT OUNCES IN THE THIRD QUARTER
Santacruz Silver Mining Ltd.'s total production in the third quarter of 2020 reached 977,679 silver equivalent ounces, representing a 38-per-cent increase from Q2 2020, as operations returned to normal. During Q2 2020, Mexico's Ministry of Health issued a federal decree requiring all non-essential businesses, including mining, to temporarily suspend activities for 42 days in response to the global pandemic.
Highlights:
- Zimapan Mine AgEq production increased by 44% compared to Q2 2020 and 52% compared to Q3 2019.
- Rosario AgEq production decreased by 20% compared to Q2 2020 and 57% to Q3 2019.
- Consolidated AgEq production continues to improve quarter over quarter despite lower production at Rosario:
- Production was 38% higher compared to Q2 2020 due to the resumption of normal throughput and 3% higher compared to Q3 2019.
- Q3 2019 results included only 50% of Zimapan and 100% of Veta Grande production, whereas Q3 2020 results reflect 100% of Zimapan and the discontinuance of operations at Veta Grande (Q3 2019 production of 214,284 AgEq oz),
Carlos Silva, chief executive officer, stated: "During Q2 2020, when operations were suspended due to the Mexican Ministry of Health's federal decree, we took the opportunity to make certain structural and management adjustments. As demonstrated by our third quarter results, these adjustments positioned us for improved performance. With the closing of our recent private placement (see news release dated October 16, 2020), we added seven new scooptrams (5 at Zimapan Mine and 2 at Rosario Mine), which will allow us to further increase production at the Zimapan Mine and move the Rosario Mine towards budgeted production. After taking these matters into account together with continued strong precious metals prices and a stronger balance sheet, management believes Q4 2020 will be a turning point in the success of Santacruz as we continue the trend of quarter over quarter improvements. We are very excited about the future of the Company as we continue to execute our production plans aiming for solid production results for Q4, and a strong start to 2021."
Investor Relations Engagement
Santacruz Silver wishes to announce that it has retained the services of Vancouver-based Mars Investor Relations Corp. ("Mars"), a full-service investor relations and consulting services company focused on the junior mining sector. Under the terms of the engagement agreement, the Company will compensate Mars $144,000 for the 12-month initial term of the Agreement and has granted Mars stock options exercisable to acquire an aggregate of 300,000 common shares at a price of C$0.30 per share for 60 months. The Options shall vest quarterly over a period of 12 months, with 25% vesting each quarter. The Options and any shares issuable upon exercise thereof are subject to a hold period of four months and one day. In addition, Mars and or its affiliates currently hold 4,313,700 shares, however Mars may from time to time acquire or dispose of securities of the Company through the market, privately or otherwise, as circumstances or market conditions warrant. Mars is at arm's length to Santacruz Silver and has no other relationship with the Company, except pursuant to the Agreement.
About Santacruz Silver Mining Ltd.
Santacruz is a Mexican focused silver company that currently owns and operates the Rosario Project. The Company also owns 100% of Carrizal Mining S.A. de C.V. Carrizal Mining holds a 20% working interest in the Company's Veta Grande Project and has the right to operate the Zimapan Mine until December 31, 2020 under a mining lease agreement. On July 28, 2020 the Company announced that it had reached agreement with Minera Cedros, S.A. de C.V. ("Minera Cedros"), a wholly owned subsidiary of Industrias Penoles, S.A.B. de C.V., to acquire outright the Zimapan Mine for US$20.0 million (plus applicable IVA of US$3.2 million), subject to a number of conditions, including receipt of all necessary regulatory approvals including approval of the TSX Venture Exchange ("TSXV") to the transaction which will constitute a "Fundamental Acquisition" pursuant to TSXV Policy 5.3.
The Company is managed by a technical team of professionals with proven track records in developing, operating and discovering silver mines in Mexico. Our corporate objective is to become a mid-tier silver producer.
We seek Safe Harbor.