/NOT FOR DISTRIBUTION TO UNITED
STATES NEWS WIRE SERVICES OR FOR DISSEMINATION IN
THE UNITED STATES /
VANCOUVER,
Feb. 12, 2014 /CNW/ - Santacruz
Silver Mining Ltd. (TSXV: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. and
including Raymond James Ltd. (the "Underwriters"), pursuant to
which the Underwriters have agreed to purchase, on a bought deal
basis pursuant to a short form prospectus, 8,750,000 common shares
(the "Common Shares") of the Company at a price of C$1.00 per Common Share for gross proceeds of
C$8,750,000 (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 to cover over-allocations, if any (the "Over-Allotment
Option"), exercisable for a period of up to 30 days after the
closing date (the Over-Allotment Option 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 March 11, 2014 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 is a Mexican focused silver company
with a producing project (Rosario); two advanced-stage projects
(San Felipe and Gavilanes) and an early-stage exploration
project (El Gachi). The Company is managed by a technical team of
professionals with proven track records in developing, operating
and discovering silver mines in Mexico. Our corporate objective is to become a
mid-tier silver producer.
'signed'
Arturo Prestamo
Elizondo,
President, Chief Executive Officer and Director
Neither the TSX Venture Exchange nor its
Regulation Services Provider (as that term is defined in the
policies of the TSX Venture Exchange) accepts responsibility for
the adequacy or accuracy of this release.
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 of the
Offering, the satisfaction of the conditions to closing of the
Offering and corporate objectives 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, that the
Company will obtain required regulatory approvals in a timely
manner, and that 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. 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 to 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 Annual Information Form and other continuous disclosure
filings filed under the Company's profile at www.sedar.com. There
can be no assurance that any forward-looking information will prove
to be accurate, as actual results and future events could differ
materially from those anticipated in such statements. Accordingly,
the reader should not place any undue reliance on forward-looking
information or statements. The Company undertakes no obligation to
update forward-looking information or statements, other than as
required by applicable law.
SOURCE SantaCruz Silver Mining Ltd.