Peñoles sells Zimapan Mine to Santacruz Silver Mining

Industrias Peñoles sold its Zimapan Mine to Santacruz Silver Mining Ltd. for $ 20 million, plus the applicable Mexican value added tax of $ 3.2 million.

Santacruz Silver Mining entered into this transaction through its wholly owned subsidiary, Carrizal Mining, signing a legally binding term sheet with Minera Cedros, a wholly owned subsidiary of Industrias Peñoles.

Located in Zimapan, State of Hidalgo, the Zimapan Mine is currently leased by Carrizal de Minera Cedros, expiring on December 31, 2020.

The Zimapan Mine has had a long mining history with recent production of the last 10 years carried out by Carrizal under a mining lease with Minera Cedros.

During this time, mining operations relied on underground diamond drilling programs. Santacruz completed the acquisition of Carrizal in October 2019.

Peñoles and sale

Assets to be acquired pursuant to the transaction include:

  • Zimapan Plant, which has produced an annual average of 12,400 tons of zinc, 3,300 tons of lead, 1,850 tons of copper and 1,290,000 ounces of silver from an average annual yield of 700,000 tons of mineralized material, generating an average of 4,681,000 ounces. silver equivalents.
  • Surface and underground infrastructure, including electrical and other infrastructure necessary to carry out daily operations.
  • A total of 34 mining concessions with an area of ​​5,139 hectares. The mining concessions are located seven kilometers from the municipality of Zimapan. To date, Carrizal has identified 14 mineral zones that are characterized as polymetallic replacement mineralization from the Pliocene age.

Minera Cedros

If Carrizal pays all outstanding royalties owed to Minera Cedros in connection with the existing lease of the Zimapan mine, which currently amounts to approximately $ 1.05 million, on or before October 31, 2020 and subject to Carrizal maintaining a guarantee through of a bank letter of credit or similar instrument in favor of Minera Cedros in the amount of 1 million dollars with a maturity date of February 15, 2021 or later, then Carrizal has the right to request an extension of the closing period until January 31, 2021 and, thereafter, you can request an extension of the closing period until March 31, 2021 if said guarantee is increased to $ 2 million and the purchase price increases by 10% after December 15, 2020.

Indicators of Santacruz Silver Mining 

Carlos Silva, CEO of Santacruz, stated: “This would be a transformative transaction for Santacruz by adding the Zimapan mine, which I have had the privilege of leading for the past 12 years, to the Company’s existing mining projects.”


Peñoles is the world’s largest producer of refined silver and the most important of metallic bismuth in America.

In addition, Peñoles is a Latin American leader in the production of refined gold and lead, and is among the world’s leading producers of refined zinc and sodium sulfate.

Peñoles shares have been listed on the Mexican Stock Exchange since 1968.



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