August 8, 2017 — Vancouver, B.C. — Santacruz Silver Mining Ltd. (TSX.V:SCZ) (“Santacruz”) and Marlin Gold Mining Ltd. (TSX.V:MLN) (“Marlin”) are pleased to announce that they have entered into a definitive agreement (the “Gavilanes Agreement”) pursuant to which Marlin, through its wholly-owned subsidiary, will acquire 100% of Santacruz’s interest in the Gavilanes Project in Durango, Mexico (the “Gavilanes Transaction”), for cash consideration of US$3.5 million, plus applicable value added taxes (“VAT”).
Santacruz has also agreed to settle the outstanding balance (the “Gavilanes Outstanding Balance”) owing on certain of the claims included in the Gavilanes Project by making a cash payment of US$500,000 and issuing 1,250,000 of common shares of Santacruz to the property vendor (the “Payment Shares”), plus all applicable VAT.
Pursuant to the terms of the Gavilanes Agreement, Marlin will advance US$580,000 to Santacruz within three business days of execution of said agreement as a refundable deposit (the “Deposit”) to fund the cash payment portion of the Gavilanes Outstanding Balance. The amount of the Deposit will be deducted from the purchase price otherwise payable by Marlin on closing of the Gavilanes Transaction. The Transaction is expected to close in August 2017.