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Santacruz Silver Completes Gavilanes Property Sale to Marlin Gold

V.SCZ

Canada NewsWire

TSX.V: SCZ
FSE: 1SZ
TSX.V: MLN

VANCOUVER, Aug. 17, 2017 /CNW/ - Santacruz Silver Mining Ltd. (TSX.V:SCZ) ("Santacruz") and Marlin Gold Mining Ltd. (TSX.V:MLN) ("Marlin") announce that, further to the companies' joint press release dated August 8, 2017, the sale of Santacruz's Gavilanes Property in Durango State, Mexico to Marlin (the "Gavilanes Transaction") for total consideration of US$3.50 million plus applicable VAT (the "Purchase Price") has been completed. 

US$0.58 million from the Purchase Price was credited against the deposit advanced by Marlin to Santacruz on August 10, 2017 in connection with the payment of the outstanding balance owing to a property vendor on certain of the claims included in the Gavilanes Project (see Santacruz's press release dated August 10, 2017).   

In addition, US$1.15 million from the Purchase Price was applied toward settling all remaining outstanding debt owing to JMET, LLC ("JMET") and JMET has released and discharged all of its security and registrations over Santacruz's assets and the 3,750,000 "cashless" warrants of Santacruz previously issued to JMET have been cancelled.

Akiba Leisman, Executive Chairman and Interim CEO of Marlin states that "we are excited to have completed the purchase of an extraordinary exploration asset in one of the world's most prolific silver mining districts. To have bought this project at an attractive price is a testament to Marlin's ability to grow on an accretive basis."

Arturo Prestamo, CEO of Santacruz, noted that "Management has executed on our plan to divest of non-core assets in order to focus on our existing producing assets with a view to scaling up production levels".

About Santacruz Silver Mining Ltd.

Santacruz is a Mexican focused silver company with two producing silver projects (Rosario Project, including the Rosario Mine, Cinco Estrellas Property and Membrillo Vein, and the right to operate the Veta Grande Project and milling facility); and two exploration properties, the Minillas Property and Zacatecas properties. Santacruz is managed by a technical team of professionals with proven track records in developing, operating and discovering silver mines in Mexico with a corporate objective to become a mid-tier silver producer.

About Marlin Gold Mining Ltd.

Marlin is a growth-oriented gold and silver mining company focused on the Americas. The company owns two properties located in Sinaloa, Mexico and Arizona, USA and a portfolio of royalties. Marlin's priority is to advance its properties toward commercial production and enhance shareholder value through the growth of its wholly owned subsidiary, Sailfish Royalty Corp. Marlin is backed by a well-funded investor with a successful track record in the resources sector. The La Trinidad Mine in Sinaloa, Mexico declared commercial production on November 1, 2014 and is one of the highest-grade open pit heap leach gold mines in Mexico. A NI 43-101 mineral resource estimate and preliminary economic assessment for the La Trinidad Mine can be found at www.sedar.com  or at www.marlingold.com.

Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

SOURCE SantaCruz Silver Mining Ltd.

View original content: http://www.newswire.ca/en/releases/archive/August2017/17/c2155.html

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