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Santacruz Silver Mining’s Carrizal Mining Inks Pact for Extension of Mine Lease on Zimapan Mine

Mining News - Published on Wed, 14 Aug 2019

Image Source: SteelGuru
Santacruz Silver Mining Ltd reported that its 50% owned subsidiary company, Carrizal Mining, SA de CV has entered into an agreement with Minera Cedros SA de CV, a wholly-own subsidiary of Grupo Peñoles SAB de CV, to extend the expiry date of the current Zimapan Mine lease agreement from July 31, 2019 to December 31, 2019. Arturo Prestamo, Santacruz’s CEO, said “We are pleased that Mineral Cedros has agreed to extend the current expiry date of the Zimapan Mine lease agreement as this provides Carrizal and Minera Cedros additional time to negotiate the potential acquisition of the Zimapan Mine by Carrizal from Minera Cedros.”

Pursuant to the terms of the existing Zimapan Mine lease agreement, Carrizal must make monthly payments to Minera Cedros based on 4% of the net smelter receipts from the concentrates produced by the Zimapan Mine for each respective month, subject to the minimum payment each month being USD 45,000 and the maximum payment being USD 60,000.

There is no assurance that Carrizal will be successful in completing the acquisition of the Zimapan Mine. Any transaction to acquire the Zimapan Mine will be subject to receipt of all necessary regulatory approvals, including Santacruz obtaining the approval of the TSX Venture Exchange.

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Posted By : Sanju Moirangthem on Wed, 14 Aug 2019
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