Zimapan Mine lease extended for a decade!

Yet, Santacruz eye to acquire the Zimapan 

Santacruz Silver Mining reports that its wholly-owned subsidiary, Carrizal Mining S.A. de C.V, has reached agreement with Minera Cedros, S.A. de C.V, a wholly owned subsidiary of Industrias Peñoles, S.A.B. de C.V., to extend the current mine lease on the Zimapan Mine from December 31, 2020 to June 30, 2021. 

In a related matter, the Company advises that it and Minera Cedros are at an advanced stage of negotiations with respect to executing the transaction in its terms, whereby Santacruz will acquire the Zimapan Mine and all related assets. 

Further, the Company advises that it is in advanced discussions with a senior mine finance group with respect to putting in place a financing facility to support the acquisition of the Zimapan Mine and related assets. 

Carlos Silva, CEO of Santacruz commented “Management is very pleased to have reached this accommodating mining lease extension agreement with Minera Cedros in these difficult Covid-19 operating times.  We believe that we are well on our way to being able to complete the acquisition of the Zimapan Mine in early 2021.” 

Santacruz is a Mexican focused silver company that currently owns and operates the Rosario Mine.  The Company also owns 100% of Carrizal Mining. Carrizal Mining holds a 20% working interest in the Company’s Veta Grande Project and has the right to operate the Zimapan Mine until June 30, 2021 under a mining lease agreement.  

The acquisition of the Zimapan Mine and related assets is subject to a number of conditions, including receipt of all necessary regulatory approvals including approval of the TSX Venture Exchange 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.