Vancouver, B.C. — 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.