Santacruz Silver Mining (TSX.V:SCZ)(Santacruz)andMarlin Gold Mining Ltd.(TSX.V:MLN)(Marlin) are pleased to announce that they have entered into a definitive agreement (the Gavilanes Agreement) pursuant to which Marlin, through its wholly-owned subsidiary, will acquire 100% of Santacruz’s interest in the Gavilanes Project inDurango, Mexico(the Gavilanes Transaction), for cash consideration ofUS$3.5 million, plus applicable value added taxes (VAT).
Santacruz has also agreed to settle the outstanding balance (the Gavilanes Outstanding Balance) owing on certain of the claims included in the Gavilanes Project by making a cash payment ofUS$500,000and issuing 1,250,000 of common shares of Santacruz to the property vendor (the Payment Shares), plus all applicable VAT.
Akiba Leisman, Executive Chairman and Interim CEO of Marlin states that:
this acquisition is a great transaction for both companies. Marlin gets to acquire an advanced exploration asset in one of the most prolific mining jurisdictions in the world for an attractive price, and Santacruz emerges as a debt free silver producer.
The potential of Gavilanes is substantial, and we are proud to use the full extent of our technical and financial capabilities to advance the project and add substantial value to Marlin shareholders.