Santacruz Silver extends Zimapan mine lease, advances acquisition process

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(Kitco News) – Santacruz Silver Mining (TSX.V:SCZ) today reported that its has reached agreement with Minera Cedros, a wholly owned subsidiary of Industrias Peñoles, to extend the current mine lease on the Zimapan mine from December 31, 2020 to June 30, 2021.

The company also advises that it and Minera Cedros are at an advanced stage of negotiations with respect to executing the transaction in its terms, whereby Santacruz will acquire the Zimapan mine and all related assets. 

Further, the company advises that it is in advanced discussions with a senior mine finance group with respect to putting in place a financing facility to support the acquisition of the Zimapan mine and related assets.

CEO Carlos Silva commented, “Management is very pleased to have reached this accommodating mining lease extension agreement with Minera Cedros in these difficult Covid-19 operating times. We believe that we are well on our way to being able to complete the acquisition of the Zimapan mine in early 2021.”

Santacruz is a Mexican focused silver company that currently owns and operates the Rosario mine. The company also owns 100% of Carrizal Mining which holds 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 agreement. 

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