Santacruz options Mexican claims from Golden Minerals

2016-05-04 09:36 ET - News Release

See News Release (C-SCZ) Santacruz Silver Mining Ltd

Mr. Arturo Prestamo reports

SANTACRUZ OPTIONS ZACATECAS DISTRICT CLAIMS FROM GOLDEN MINERALS COMPANY

Santacruz Silver Mining Ltd. has entered into an option agreement to acquire from Golden Minerals Company certain mineral claims located in the Zacatecas mining district, Zacatecas, Mexico.

The Zacatecas mining district is located in the central part of Mexico, in the main Mexico silver belt. The Zacatecas properties are located at the periphery of the Zacatecas, Veta Grande, Guadalupe, Panuco and Morelos municipalities in the state of Zacatecas, Mexico, and consist of 149 concessions covering approximately 7,800 hectares.

In order to acquire the Zacatecas properties, Santacruz will be required to pay to Golden Minerals the sum of $1.5-million (U.S.), including an initial payment of $200,000 on signing the agreement (paid), plus additional payments as follows: six months after signing of $200,000, 12 months after signing of $300,000, 18 months after signing of $300,000 and $500,000 at 24 months after signing. A 1-per-cent net smelter royalty exists with the original property vendors on some of the claims included in the Zacatecas properties.

When combined with the company's existing Zacatecas mining district exploration and mining rights acquired under the agreement with Contracuna (see news release of Nov. 2, 2015), the company now controls approximately 8,900 hectares in this historic and prolific silver mining belt. The area includes such mines as the Fresnillo silver mine, the Madero mine (operated by Penoles) and the Cozamin mine operated by Capstone Mining Corp.

"This agreement with Golden Minerals cements our existing land position in the Zacatecas mining district. With our work at the Veta Grande mine progressing well, management believes that this strategic acquisition agreement will allow the company to systematically explore and develop the Veta Grande mine and surrounding area for the foreseeable future," said Arturo Prestamo, president and chief executive officer.

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