/NOT FOR DISTRIBUTION TO UNITED STATES NEWS WIRE SERVICES OR FOR
DISSEMINATION IN THE UNITED
STATES/
TSX.V: SCZ
FSE: 1SZ
VANCOUVER, July 28, 2017 /CNW/ - Santacruz Silver Mining
Ltd. (TSX.V:SCZ) (the "Company" or "Santacruz") reports that
further to its news release dated June 28,
2017, it has closed, for gross proceeds of $935,000, the first tranche of the
previously announced non-brokered private placement for gross
proceeds of up to $1,500,000 (the
"Private Placement").
The Company sold 4,675,000 units (the "Units") pursuant to the
Offering at price of $0.20 per
Unit. Each unit consisted of one common share of the Company
and one common share purchase warrant (a "Warrant"). Each
Warrant entitles the holder to acquire one common share of the
Company at a price of $0.28 per share
for a period of 30 months expiring on January 27, 2020. Robert McMorran, the Chief Financial Officer and
Corporate Secretary of the Company, purchased 625,000 Units and
Roland Löhner, a director of the Company, purchased 1,000,000 Units
for aggregate proceeds of $325,000.
Their participation is considered to be a "related party
transaction" within the meaning of TSXV Policy 5.9 and Multilateral
Instrument 61-101 ("MI 61-101"). The Company is relying on the
exemptions from the valuation and minority shareholder approval
requirements of MI 61-101 contained in Sections 5.5(a) and
5.7(1)(a) of MI 61-101 in respect of such participation as neither
the fair market value of the shares issued to, nor the
consideration paid by, such persons exceeds 25% of the Company's
market capitalization.
The net proceeds from the Private Placement will be used for
general working capital and corporate purposes, as
applicable. All securities issued pursuant to the Private
Placement are subject to a statutory hold period of four months
plus one day from the date of issuance, in accordance with
applicable securities legislation, expiring on November 28, 2017.
In connection with the first tranche of the Private Placement,
the Company paid finders' fees totalling an aggregate of
$29,400, which represents 6% of the
gross proceeds from subscribers introduced by such finders.
This news release does not constitute an offer to sell or a
solicitation of an offer to buy nor shall there be any sale of any
of the securities described herein in any jurisdiction in which
such offer, solicitation or sale would be unlawful. The securities
described herein have not been and will not be registered under the
United States Securities Act of 1933, as amended (the "U.S.
Securities Act"), or the securities laws of any state of
the United States and may not be
offered or sold within the United
States (as defined in Regulation S under the U.S. Securities
Act) unless registered under the U.S. Securities Act and applicable
state securities laws or pursuant to an exemption from such
registration requirements.
About Santacruz Silver Mining Ltd.
Santacruz is a Mexican focused silver company with two producing
silver projects (Rosario,
including the Cinco Estrellas property and Membrillo Vein, and the
right to operate the Veta Grande
silver project and milling facility); 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
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 constitute
"forward-looking information" as such term is used in applicable
Canadian securities laws, including, without limitation, statements
regarding the anticipated use of proceeds from the Private
Placement. 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, 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 will have properties
consistent with management's expectations, that the Company will
receive all required regulatory approvals, including final approval
of the TSX Venture Exchange in respect of the Private Placement,
and that future metal prices and the demand and market outlook for
metals will remain stable or improve. 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, or lower production
levels; delays and/or cessation in planned work; changes in the
Company's financial condition and development plans; delays in
regulatory approval; risks associated with the interpretation of
data (including in respect of the third party mineralized material)
regarding 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 Project
The decisions to commence production at the Rosario Mine,
Cinco Estrellas Property and Membrillo Prospect were 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 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.
SOURCE SantaCruz Silver Mining Ltd.