Santacruz Silver Announces Agreement to Assign San Felipe Project to Americas Silver Corporation Mexico

https://www.juniorminingnetwork.com/junior-miner-news/press-releases/569-tsx-venture/scz/29943-santacruz-silver-announces-agreement-to-assign-san-felipe-project-to-americas-silver-corporation.html

VANCOUVER, March 2, 2017 /CNW/ – Santacruz Silver Mining Ltd. (TSX.V:SCZ) (“Santacruz”) reports that its wholly-owned subsidiary, Impulsora Minera Santacruz, S.A. de C.V. (together with Santacruz “the Company”), has entered into an agreement (the “Agreement”) with Americas Silver Corporation (“Americas Silver”) to assign 100% of its interest in the San Felipe Project located in Sonora, Mexico to Americas Silver for US$7 million plus VAT paid on execution of the Agreement, comprised of US$5.0 million plus VAT to the Company and US$2.0 million plus VAT to Minera Hochschild Mexico, S.A. de C.V., the underlying property vendor.  These amounts were paid on March 2, 2017.

From the proceeds of US$5.0 million plus VAT received by the Company, US$4.25 million has been paid to JMET, LLC (“JMET”), substantially reducing the amount outstanding on the promissory note held by JMET (the “JMET Note”) to approximately US$0.75 million.  Upon closing of the El Gachi transaction with First Majestic Silver Corp. previously announced on February 24, 2017, the residual balance on the JMET Note of U$0.75 million will be repaid in full with US$1.5 million in restructuring fees remaining outstanding.

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