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  • Santacruz Silver Mining (SCZ) has closed the second and last tranche of its non-brokered private placement offering
  • The company initially planned to raise C$6 million but later upsized the placement to produce proceeds of approximately $10 million
  • Santacruz’s very successful capital raise included a lead order from Canadian merchant bank, Palisades Goldcorp
  • The company will primarily use the proceeds to purchase underground equipment for its Zimapan property in Mexico
  • Santacruz Silver Mining (SCZ) is down 3.03 per cent and is currently trading at C$0.32 per share

Santacruz Silver Mining (SCZ) has closed the second and last tranche of its non-brokered private placement offering.

The company originally announced its plans for a private placement on September 21, stating hopes of raising C$6 million. However, Santacruz later upsized the placement on September 30 and October 7, resulting in much higher gross proceeds than initially planned.

In the private placement’s last tranche, the company issued a total of 10,784,922 units at $0.22 per unit, for $2,364,762.84 in proceeds. Overall, the placement’s two tranches saw the issuance of an aggregate 45,427,463 units, for proceeds of approximately $10 million.

Santacruz’s very successful capital raise included a lead order from Canadian merchant bank, Palisades Goldcorp.

Each unit contains one common share in the company, and one non-transferable common share purchase warrant. Each warrant allows the holder to buy one more common share in Santacruz for $0.30, within 36 months of the warrant’s issue date.

All securities which are issued through the placement’s second tranche are subject to a hold period of four months. As such, they will expire on February 16, 2021. 

As payment for their services in the first and second tranches of the private placement, certain finders have received cash finders’ fees of $499,708.75. Santacruz also issued 2,544,130 broker warrants and 204,000 finder units to the finders.

The company will primarily use the proceeds to purchase underground equipment for its Zimapan property in Mexico. However, some funds may also go towards general working capital and corporate purposes.

Santacruz Silver Mining (SCZ) is down 3.03 per cent and is trading at $0.32 per share at 2:44pm EDT.


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