Company Overview

Santacruz Silver is a Latin-American focused silver company with one producing silver mine (Zimapan) and two exploration properties in Mexico. The Company recently announced a fundamental acquisition to grow production and generate cash flow by acquiring Glencore’s Bolivian silver producing assets. This includes three producing assets in Bolivia and one advanced exploration project with excellent potential.

Transformational Transaction with Glencore for Bolivian Silver Assets

In October 2021, the Company announced it has entered into a definitive share purchase agreement with Glencore whereby Santacruz will acquire a portfolio of Bolivian silver assets from Glencore, including a 45-per-cent interest in the producing Bolivar and Porco mining operations held through an unincorporated joint venture with Corporacion Minera de Bolivia (COMIBOL), a Bolivian state-owned entity, a 100-per-cent interest in the Sinchi Wayra business which includes the producing Caballo Blanco mining complex, the Sorocaya project located in Bolivia, and the San Lucas ore sourcing and trading business and certain related properties and assets.

Pursuant to the agreement, Santacruz will pay initial upfront consideration of $20-million (USD) (subject to customary working capital adjustments), and an additional $90-million (USD) is payable in equal instalments over four years from the closing of the transaction, subject to certain conditions and adjustments. In addition, Glencore will also be granted a 1.5-per-cent net smelter returns royalty on the assets.

Key transaction highlights:

  • Creation of a significant Americas-focused silver producer approaching senior status, with additional significant leverage to the zinc market;
  • Diversifies production across a robust portfolio of producing mines and creates a platform for future growth;
  • Immediately accretive to cash flow and all key metrics