Peñoles extends lease of mine in Mexico to Santacruz Silver

Santacruz Silver Mining Ltd.

reported on Tuesday that its wholly owned subsidiary, Carrizal Mining, reached an agreement with Minera Cedros, a wholly owned subsidiary of Industrias Peñoles, to extend the current lease of the Zimapan mine from December 31, 2020 to June 30, 2021.

In a related matter, Santacruz Silver reported that it and Minera Cedros are in an advanced stage of negotiations regarding the terms of the execution of the transaction, through which Santacruz will acquire the Zimapan Mine and all related assets.

Additionally, Santacruz Silver reported that it is in advanced discussions with a senior mine financing group regarding the launch of a financing facility to support the acquisition of the Zimapan mine and related assets.

Carlos Silva, CEO of Santacruz commented: “Management is very pleased to have reached this complacent mining lease extension agreement with Minera Cedros in these difficult times of Covid-19 operation. We believe that we are on track to complete the acquisition of the Zimapan mine in early 2021 ”.

Santacruz Silver Mining Ltd.

It is a silver company with a Mexican focus that currently owns and operates the Rosario mine.

The company also owns 100% of Carrizal Mining.

Carrizal Mining has a 20% working interest in the Company’s Veta Grande Project and has the right to operate the Zimapan Mine until June 30, 2021 under a mining lease.

Photo: Santacruz Silver. Zimapan mine.

The acquisition of the Zimapan mine and related assets is subject to a number of conditions, including receipt of all necessary regulatory approvals.

The company is managed by a technical team of professionals with a proven track record in the development, operation and discovery of silver mines in Mexico. Its corporate goal is to become a mid-level silver producer.