VANCOUVER, BRITISH COLUMBIA--(Marketwire - Jan. 23, 2013) -
NOT FOR DISTRIBUTION TO UNITED STATES NEWS WIRE SERVICES OR FOR DISSEMINATION IN THE UNITED STATES
Santacruz Silver Mining Ltd. (TSX VENTURE:SCZ) ("Santacruz Silver" or the "Company") is pleased to announce that it has entered into an agreement with a syndicate of underwriters led by Canaccord Genuity Corp. (the "Underwriters"), pursuant to which the Underwriters have agreed to purchase, on a bought deal basis pursuant to a short form prospectus, 16,250,000 common shares (the "Common Shares") of the Company at a price of C$1.85 per Common Share for gross proceeds of C$30,062,500 (the "Underwritten Offering"). In addition, the Company has granted the Underwriters an option to purchase additional Common Shares at the Offering price to raise additional gross proceeds of up to 15% of the Offering (the "Over-Allotment Option"), exercisable for a period of up to 30 days after the closing date (the "Over-Allotment Option", and together with the Underwritten Offering, the "Offering").
The Underwriters will receive a cash fee on the sale of the Common Shares equal to 6% of the gross proceeds raised, and broker warrants ("Broker Warrants") equal to 6% of the Offering. Each Broker Warrant shall be exercisable for one common share of the Company at the issue price of the Offering at any time up to 24 months after closing.
The proceeds from the Offering are expected to be used by the Company for exploration and development of its projects in Mexico, and for general working capital and corporate purposes.
Closing of the Offering is anticipated to occur on or before February 19, 2013 and is subject to certain conditions including, but not limited to, the completion of satisfactory due diligence by the Underwriters and the receipt of applicable regulatory approvals including approval of the TSX Venture Exchange.
This news release does not constitute an offer to sell or a solicitation of an offer to buy nor shall there be any sale of any of the Common Shares in any jurisdiction in which such offer, solicitation or sale would be unlawful. The Common Shares have not been and will not be registered under the United States Securities Act of 1933, as amended (the "U.S. Securities Act"), or the securities laws of any state of the United States and may not be offered or sold within the United States (as defined in Regulation S under the U.S. Securities Act) unless registered under the U.S. Securities Act and applicable state securities laws or pursuant to an exemption from such registration requirements.
About Santacruz Silver Mining Ltd.
Santacruz Silver is focused on three advanced stage silver deposits in Mexico with a corporate objective to reach production by first quarter 2013. The Company aims to become a mid-tier silver producer in Mexico.
Arturo Prestamo Elizondo, President, Chief Executive Officer and Director
Forward looking information
Certain statements contained in this news release, such as statements regarding the anticipated use of proceeds from the Offering, the anticipated closing date for the Offering, the satisfaction of the conditions to closing of the Offering and corporate objectives and aims of the Company, constitute "forward-looking information" as such term is used in applicable Canadian securities laws. The forward-looking information herein is based on plans, expectations and estimates of management as at the date hereof and is subject to certain factors and assumptions, including, that the Company's financial condition and development plans will not change as a result of unforeseen events, the Company will receive the required regulatory approvals in a timely manner, future metal prices and the demand and market outlook for metals will be consistent with management's forecasts and expectations. Forward-looking information is subject to a variety of risks and uncertainties and other factors that could cause plans, estimates and actual results to vary materially from those projected in such forward-looking information. There can be no assurance that such statements will prove to be accurate and actual results and future events could differ materially from those anticipated in such statements. Factors that could cause the forward-looking information in this news release to change or to be inaccurate include, but are not limited to, the risk that any of the assumptions outlined above prove not to be valid or reliable, that occurrences such as those referred to above are realized and result in delays, or cessation in planned work, that the Company's financial condition and development plans change, that there are delays in regulatory approval, risks associated with the interpretation of data, the geology, grade and continuity of mineral deposits, the possibility that results will not be consistent with the Company's expectations, as well as the other risks and uncertainties applicable to mineral exploration and development activities and to the Company as set forth in the Company's Filing Statement and other continuous disclosure filings filed under the Company's profile at www.sedar.com. The Company undertakes no obligation to update these forward-looking statements, other than as required by applicable law.