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Be the first with the news that moves the market- Santacruz Silver Mining (SCZ) is looking to raise C$6 million in a private placement to purchase underground equipment for its Zimapan property in Mexico
- The company intends to issue 27.27 million units at a price of 22 cents each, consisting of one common share and one share purchase warrant
- Palisades Goldcorp, a resource-focused merchant bank, has agreed to acquire half of the units on issue for a price of $3 million
- On July 28, the company signed a deal to acquire Minera Cedros SA, a subsidiary of IndustriasPeñoles, which owns the Zimapan property
- Santacruz Silver Mining (SCZ) is currently down 4.26 per cent and is traidng at $0.22 per share
Santacruz Silver Mining (SCZ) hopes to raise C$6 million in a private placement to purchase underground equipment for its Zimapan property in Mexico.
Under the terms of the placement, the Vancouver-based company intends to issue 27,272,727 units at a price of $0.22 each. These units will be comprised of one common share in Santacruz and one common share purchase warrant.
Each warrant will entitle the holder to acquire an additional common share at a price of $0.30 over a period of 36 months from the date of issuance.
Palisades Goldcorp, a Canadian resource-focused merchant bank, has indicated its intention to acquire half of the units on offer for a total of $3 million.
Carlos Silva, CEO of Santacruz Silver Mining, welcomed Palisades’ involvement.
“We are very pleased to have Palisades as lead order on the financing as they are one of the premier precious metals financing groups in this current bull market.
“We look forward to progressing with them to unlock value for shareholders,” he added.
The proceeds raised will be used to fund the purchase of underground equipment for Santacruz’s Zimapan property in Hidalgo State, Mexico, as well as for general working capital and corporate purposes.
As announced on July 28 this year, Santacruz signed a deal to purchase the Zimapan property through its acquisition of Minera Cedros SA, a wholly owned subsidiary of IndustriasPeñoles SAB, for approximately $26.6 million.
The placement is expected to close by October 9, subject to regulatory approval from the TSX Venture Exchange.
Santacruz Silver Mining (SCZ) is currently down 4.26 per cent and is trading at 22 cents per share at 10:48am EDT.
