Santacruz Sells Properties, Strengthening Overall StrategyBy Alejandro Ehrenberg | Thu, 07/23/2020 - 17:19
Santacruz Silver Mining announced that it has entered an agreement with Zacatecas Silver Corp. for the sale of a 100 percent interest in the Zacatecas properties, located in the Zacatecas Mining District for consideration of US$1.5 million and the issuance of 5 million common shares of Zacatecas Silver.
Santacruz Silver explained that the Zacatecas properties comprise 149 mining concessions totaling approximately 7,826ha. They are located on the highly prospective Fresnillo Silver Belt, which has produced over 6.2 billion oz of silver. The Zacatecas properties lie 25km southeast of MAG Silver’s Juanicipio Mine and Fresnillo plc’s Fresnillo Mine. The properties include the Panuco Deposit, which has an inferred mineral resource of 19,472,901oz from 3,954,729 tons at 153.2 g/t Ag Eq with significant resource expansion potential and high-grade silver exploration upside.
“Santacruz is very pleased to have attracted the Zacatecas Silver team to the properties. While we identified the potential and acquired the properties during the downturn in the silver cycle, we are now pleased to vend these properties to an experienced team that can advance them and maximize shareholder value in current market conditions. By transacting with Zacatecas Silver, we anticipate that the properties will be very well funded and aggressively drilled. Any future success realized by Zacatecas Silver will in turn benefit Santacruz and its shareholders due to Santacruz's equity interest post transaction,” stated Carlos Silva, Santacruz Silver CEO.
The agreement with Zacatecas Silver is in line with Santacruz’s long-term strategy, as it will provide the latter company with stronger finances. “My goal for the company is to have at least five operations, each with a production rate above 2,000t/d before 2025. Our production goal over the next five years is between 10,000-14,000t/d of silver. I prefer to set the company and staff ambitious goals even if we cannot accomplish them all, rather than achieve mediocre targets,” said Silva in an interview with Mexico Business News.
Zacatecas Silver CEO Bryan Slusarchuk emphasized that the time is ripe for investing in Mexican silver. “We are big believers that macro conditions for silver have never been better. It is also undisputable that Zacatecas is one of the world's best addresses for high grade silver. To acquire a project with historic high-grade intercepts, an inferred mineral resource with expansion and exploration upside is very timely. Our team has created significant shareholder value for precious metals investors during the bear market and now with a precious metals bull starting, we are ideally positioned in terms of technical expertise and capital markets ability to continue delivering excellent potential upside going forward,” he stated.