Santacruz Silver Mining Ltd. through its wholly owned subsidiary, Carrizal Mining, S.A. de C.V. entered into a legally binding term sheet (with Minera Cedros, S.A. de C.V. ("Minera Cedros"), a wholly owned subsidiary of IndustriasPeñoles, S.A.B. de C.V. to acquire the Zimapan Mine and related assets located in Zimapan, Hidalgo State, Mexico for total consideration of US$20 million.
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 above Ag Eq references production results and have been calculated using the following metal prices:
2015 Ag Eq was calculated using metal prices of: Ag $17.75/oz, Pb $0.83/lb, Zn $1.09/lb and Cu $2.49/lb.
2016 Ag Eq was calculated using metal prices of: Ag $14.50/oz, Pb $0.76/lb, Zn $0.71/lb and Cu $2.20/lb.
2017 Ag Eq was calculated using metal prices of: Ag $16.00/oz, Pb $1.00/lb, Zn $1.15/lb and Cu $2.81/lb.
2018 Ag Eq was calculated using metal prices of: Ag $17.00/oz, Pb $1.00/lb, Zn $1.35/lb and Cu $2.93/lb.
2019 Ag Eq was calculated using metal prices of: Ag $15.25/oz, Pb $0.94/lb, Zn $1.20/lb and Cu $2.72/lb.