Santacruz Closes Equity Financing and Completes Restructuring of Silver Pre-Payment Agreement

http://www.juniorminingnetwork.com/junior-miner-news/press-releases/569-tsx-venture/scz/22317-santacruz-closes-equity-financing-and-completes-restructuring-of-silver-pre-payment-agreement.html

VANCOUVER, July 14, 2016 /CNW/ – Santacruz Silver Mining Ltd. (“Santacruz” or the “Company”) (TSX.V:SCZ) is pleased to report that it has closed its previously announced public offering of units (the “Offering“) through a syndicate of agents led by Haywood Securities Inc. and including M Partners Inc. (collectively, the “Agents“) and has completed the previously announced restructuring of its Silver Pre-Payment Agreement with JMET, LLC (“JMET“). The restructuring amends the Silver Pre-Payment Agreement such that, among other things, the Company no longer has any metal delivery obligations to JMET.

The Company has issued 37,975,000 units (the “Units“) pursuant to the Offering at a price of C$0.40 per Unit for total gross proceeds of C$15,190,000.  The Offering included 4,875,000 Units issued pursuant to the Agents’ exercise in full of their option to purchase additional Units.  Each Unit consisted of one common share and one-half of one transferable common share purchase warrant (each whole common share purchase warrant, a “Warrant“). Each Warrant entitles the holder to acquire one common share (a “Warrant Share“) at a price per Warrant Share of C$0.55 for a period of 30 months from closing.

The Company has used a portion of the net proceeds of the Offering to restructure its obligations to JMET, as described below, with the remainder to be used for general working capital purposes.

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