TSX.V: SCZ
FSE: 1SZ
VANCOUVER, March 1, 2018 /CNW/ - Santacruz Silver Mining
Ltd. (TSX.V:SCZ) (the "Company" or "Santacruz") reports that
the Company has entered into a services agreement (the "Agreement")
with Carrizal Mining, S.A. de C.V. ("Carrizal") pursuant to which
Santacruz will provide to Carrizal certain mine development,
metallurgurical and geological consulting services as well as other
administrative services. The Agreement is open ended but
management expects it will remain in force until at least the end
of 2018. As consideration for the services Carrizal will make
monthly payments to Santacruz of approximately US$1.1 million. Santacruz intends to use the
funds for working capital purposes.
Arturo Préstamo, CEO of Santacruz, stated "This services
agreement is an important step for the Company as it will provide
working capital that will allow us to expand the Veta Grande
Project into a significant silver producer, whilst increasing the
Rosario Project production during the year."
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 Prospect, and
the Veta Grande project and
milling facility) and two exploration properties, including the
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.
About Carrizal Mining, S.A. de C.V.
Carrizal Mining is a Mexican privately owned Company which
operates the Zimapan mine in
Zimapan Hidalgo Mexico. The
Company operates a 3,200 tpd mill and produces approximately 5.5
million silver equivalent ounces a year.
'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. 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, assumptions as
to the continuation of payments under the Agreement, the expansion
of the Vita Grande Project, the Company's financial condition
and development plans do not change as a result of unforeseen
events, 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, 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.