Santacruz Silver Mining closes $935K first tranche of private placement

News Release

July 28, 2017
NOT FOR DISTRIBUTION TO UNITED STATES NEWS WIRE SERVICES OR FOR DISSEMINATION IN THE UNITED STATES

Santacruz Silver Closes First Tranche of Non-Brokered Private Placement

Vancouver, B.C. – Santacruz Silver Mining Ltd. (TSX.V:SCZ) (the “Company” or “Santacruz”) reports that further to its news release dated June 28, 2017, it has closed, for gross proceeds of $935,000, the first tranche of the previously announced non-brokered private placement for gross proceeds of up to $1,500,000 (the “Private Placement”).

The Company sold 4,675,000 units (the “Units”) pursuant to the Offering at price of $0.20 per Unit. Each unit consisted of one common share of the Company and one common share purchase warrant (a “Warrant”). Each Warrant entitles the holder to acquire one common share of the Company at a price of $0.28 per share for a period of 30 months expiring on January 27, 2020. Robert McMorran, the Chief Financial Officer and Corporate Secretary of the Company, purchased 625,000 Units and Roland Löhner, a director of the Company, purchased 1,000,000 Units for aggregate proceeds of $325,000. Their participation is considered to be a “related party transaction” within the meaning of TSXV Policy 5.9 and Multilateral Instrument 61-101 (“MI 61-101”). The Company is relying on the exemptions from the valuation and minority shareholder approval requirements of MI 61-101 contained in Sections 5.5(a) and 5.7(1)(a) of MI 61-101 in respect of such participation as neither the fair market value of the shares issued to, nor the consideration paid by, such persons exceeds 25% of the Company’s market capitalization.

The net proceeds from the Private Placement will be used for general working capital and corporate purposes, as applicable. All securities issued pursuant to the Private Placement are subject to a statutory hold period of four months plus one day from the date of issuance, in accordance with applicable securities legislation, expiring on November 28, 2017.

In connection with the first tranche of the Private Placement, the Company paid finders’ fees totalling an aggregate of $29,400, which represents 6% of the gross proceeds from subscribers introduced by such finders.

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 securities described herein in any jurisdiction in which such offer, solicitation or sale would be unlawful. The securities described herein 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 two producing silver projects (Rosario, including the Cinco Estrellas property and Membrillo Vein, and the right to operate the Veta Grande silver project and milling facility); and three exploration properties including the Gavilanes property, Minillas property and Zacatecas properties. 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 Préstamo Elizondo,
President, Chief Executive Officer and Director

For further information please contact:
Neil MacRae
Santacruz Silver Mining Ltd.
Email: info@santacruzsilver.com
Telephone: (604) 569-1609

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.