TSX.V: SCZ
FSE: 1SZ
VANCOUVER, Dec. 23, 2016 /CNW/ - Santacruz Silver
Mining Ltd. (TSX.V:SCZ) ("Santacruz" or the "Company")
reports that it has terminated the previously announced agreement
in connection with the Company's sale of the San Felipe Project
(the "Transaction") (see press release dated December 7, 2016) to the Hermosillo Group. No
payments pursuant to the Transaction have been made to date.
Discussions have been on-going with respect to revised payment
terms however this process has not led to a payment schedule
acceptable to the Company and therefore the agreement has been
terminated by the Company.
The Company is in discussions with Minera Hochschild Mexico,
S.A. de C.V. the underlying property vendor with respect to the
continued deferral of the payment terms for the San Felipe
Project.
About Santacruz Silver Mining Ltd.
Santacruz is a Mexican focused silver company with two producing
silver (Rosario and Veta Grande), and five exploration properties
including the San Felipe Project, Gavilanes property, El Gachi property,
Minillas property and Zacatecas properties, including the Panuco
Deposit. 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
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.
Forward looking information
Certain statements contained in this news release, including
information concerning the continued deferral of the payment terms
for the San Felipe Project constitute "forward-looking information"
as such term is used in applicable Canadian securities laws.
Forward-looking information is based on plans, expectations and
estimates of management at the date the information is provided and
is subject to certain factors and assumptions. In making the
forward-looking statements included in this news release, the
Company has applied several material assumptions, including, but
not limited to, the assumption that the Company will be able to
negotiate continued deferral of the payment terms for the San
Felipe Project, that the Company's financial condition and
development plans do not change as a result of unforeseen events,
that third party mineralized material to be milled by the Company
has properties consistent with management's expectations, that the
Company obtains all required regulatory approvals, and that future
metal prices and the demand and market outlook for metals remains
stable or improves. Forward-looking information is subject to
a variety of risks and uncertainties and other factors that could
cause plans, estimates and actual results to vary materially from
those projected in such forward-looking information. Factors
that could cause the forward-looking information in this news
release to change or to be inaccurate include, but are not limited
to, the risk that any of the assumptions referred to prove not to
be valid or reliable, which could result in lower revenue, higher
cost, lower production levels, delays, and/or cessation in planned
work, that the Company's financial condition and development plans
change, delays in regulatory approval, risks associated with the
interpretation of data (including in respect of the third party
ore), the geology, grade and continuity of mineral deposits, the
possibility that results will not be consistent with the Company's
expectations, as well as the other risks and uncertainties
applicable to mineral exploration and development activities and to
the Company as set forth in the Company's continuous disclosure
filings filed under the Company's profile at www.sedar.com. There
can be no assurance that any forward-looking information will prove
to be accurate, as actual results and future events could differ
materially from those anticipated in such statements. Accordingly,
the reader should not place any undue reliance on forward-looking
information or statements. The Company undertakes no obligation to
update forward-looking information or statements, other than as
required by applicable law.
Rosario Mine
The decision to commence production at the Rosario Mine was
not based on a feasibility study of mineral reserves demonstrating
economic and technical viability, but rather on a more preliminary
estimate of inferred mineral resources. Accordingly, there is
increased uncertainty and economic and technical risks of failure
associated with this production decision. Production and economic
variables may vary considerably, due to the absence of a complete
and detailed site analysis according to and in accordance with NI
43-101.
Veta Grande Project
The decision to commence production at the Veta Grande
Project was not based on a feasibility study on mineral reserves
demonstrating economic and technical viability. Accordingly,
there is increased uncertainty and economic and technical risks of
failure associated with this production decision. Production
and economic variables may vary considerably due to the absence of
a complete and detailed site analysis according to and in
accordance with NI 43-101.
Cinco Estrellas Property
The decision to commence production at the Cinco Estrellas
Property was not based on a feasibility study on mineral reserves
demonstrating economic and technical viability. Accordingly,
there is increased uncertainty and economic and technical risks of
failure associated with this production decision. Production
and economic variables may vary considerably due to the absence of
a complete and detailed site analysis according to and in
accordance with NI 43-101.
SOURCE SantaCruz Silver Mining Ltd.