Mr. Arturo Elizondo reports
SANTACRUZ SILVER REPORTS COMPLETION OF CARRIZAL MINING ACQUISITION AND EARLY WARNING REPORT DISCLOSURE OF C. SILVA
Santacruz Silver Mining Ltd., effective Oct. 4, 2019, having received requisite shareholder and stock exchange approvals, has acquired the remaining 50 per cent of the outstanding shares of PCG Mining SA de CV from a non-arm's-length party in consideration for the issue of 30 million common shares of the company, resulting in the company owning 100 per cent of PCG, which is the parent holding company of Carrizal Mining SA de CV.
Pursuant to the requirements of National Instrument 62-103 (The Early Warning System and Related Take-Over Bid and Insider Reporting Issues), Carlos Alberto Silva Ramos confirms that, on Oct. 4, 2019, he and three family members acquired ownership and control of an aggregate of 30 million common shares of the company pursuant to the transaction at a deemed price of five cents per share for total deemed consideration of $1.5-million.
Immediately prior to the closing of the transaction, the Silva family did not own any common shares of the company and Mr. Silva holds stock options exercisable to purchase 1.5 million common shares of the company.
Immediately after the closing of the transaction, the Silva family owns the transaction shares representing approximately 14.7 per cent of the issued and outstanding common shares of the company on a non-diluted basis and 15.3 per cent on a partially diluted basis, assuming the exercise of the stock options owned by Mr. Silva.
The acquisition by the Silva family of the transaction shares was primarily made for investment purposes. Each member of the Silva family may increase or decrease his or her investment in the company from time to time according to market conditions or other relevant factors.
The transaction shares were issued by the company on a private placement basis and are subject to a hold period in Canada expiring on Feb. 5, 2020.
A copy of the requisite early warning report will be issued and filed by Mr. Silva on SEDAR.
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