Santacruz Silver Mining (TSX.V:SCZ) (the Company or Santacruz) reports that it has signed an agreement (the Option Agreement) with certain private Mexican companies (together Contracua) pursuant to which Contracua has granted Santacruz an option to purchase a 100% interest in the Veta Grande and Minillas properties, for aggregate cash consideration of US$15,500,000.
The Company currently operates the properties on a 60%/40% net profits interest (NPI) basis pursuant to an exclusive thirty-year right granted by Contracua.
Arturo Prstamo, President and CEO of Santacruz, commented:
The Veta Grande and Minillas properties together with our Zacatecas properties represent one of the largest and most historically important land packages within the Zacatecas mining region, and we are very pleased to have this agreement in place which gives us the opportunity to consolidate our mineral interests in the area.
This is another important step in our plan to expand our Zacatecas operations into a larger district play, and we look forward to its continued development as part of Santacruz’s transition into a mid-tier Mexican silver producer.