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Message: Santacruz to Transfer the El Gachi Property to First Majestic for US$2.5 Million

Santacruz to Transfer the El Gachi Property to First Majestic for US$2.5 Million

 

Canada NewsWire

VANCOUVER, Feb. 24, 2017

TSX.V: SCZ
FSE: 1SZ

VANCOUVER, Feb. 24, 2017 /CNW/ - Santacruz Silver Mining Ltd. (TSX.V:SCZ) ("Santacruz" or the "Company") announces that it has signed a binding agreement (the "Agreement") to transfer its interest in the El Gachi Property in Sonora State, Mexico to First Majestic Silver Corp. ("First Majestic") for total consideration of US$2.5 million plus applicable VAT.

The El Gachi Property comprises a 48,057 hectare land package located adjacent to First Majestic's Santa Elena Mine in Sonora State, Mexico.

"With our corporate strategic focus being concentrated on our two producing projects, Veta Grande and Rosario, the El Gachi Property became a non-core asset in our mineral property portfolio." stated Arturo Préstamo, President and CEO of Santacruz.  "As such we are pleased to enter this transaction with First Majestic which allows us to monetize our investment, pay down debt, and provide additional working capital for our core operations."

Of the total proceeds received by the Company, approximately US$0.75 million will be paid to JMET, LLC as partial re-payment of its outstanding loan, and US$0.58 million will be paid to Minera Hochschild Mexico, S.A. de C.V.

Closing of the transaction is subject to satisfactory completion by First Majestic of its due diligence and to certain other conditions customary in similar transactions.

About Santacruz Silver Mining Ltd.

Santacruz is a Mexican focused silver company with two producing silver projects (Rosario, including the Cinco Estrellas property, and the right to operate the Veta Grande project and milling facility; an advanced-stage development project (San Felipe) and three exploration properties including the Gavilanes property, Minillas property and Zacatecas properties. 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.

'signed'

Arturo Préstamo Elizondo,
President, Chief Executive Officer and Director

 

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