Santacruz is a Mexican focused silver company that currently owns and operates the Rosario Project. The Company also owns 100% of Carrizal Mining S.A. de C.V. Carrizal Mining holds a 20% working interest in the Company's Veta Grande Project and has the right to operate the Zimapan Mine until December 31, 2020 under a mining lease agreement. On July 28, 2020 the Company announced that it had reached agreement with Minera Cedros, S.A. de C.V. ("Minera Cedros"), a wholly owned subsidiary of IndustriasPeñoles, S.A.B. de C.V., to acquire outright the Zimapan Mine for US$20.0 million (plus applicable IVA of US$3.2 million), subject to a number of conditions, including receipt of all necessary regulatory approvals including approval of the TSX Venture Exchange ("TSXV") to the transaction which will constitute a "Fundamental Acquisition" pursuant to TSXV Policy 5.3.
The Company also has rights to two exploration properties, the Minillas property and Zacatecas properties as well as the Veta Grande Project where mining operations are currently suspended.
The Zimapan Mine is currently under lease by Carrizal from Minera Cedros expiring December 31, 2020. The Zimapan Mine has had a long mining history with recent production for over the past 10 years being carried out by Carrizal under a mining lease agreement with Minera Cedros. During this time, mining operations were based on underground diamond drilling programs. Santacruz completed the acquisition of Carrizal in October 2019.
The Rosario Project is located within the Charcas Mining District which has been the focus of exploration and development interest for over 400 years. The first mineral discovery in the Charcas area was by Don Juan de Onate in 1563 (INAFED, 2010) with mineral production beginning later from several small mines of the Hacienda de Charcas Viejas around 1570 (Butler, 1972). Mining has continued in the area at varying rates since the 16th century.