Santacruz Silver Mining Announces C$30 Million Bought Deal Common Share
/NOT FOR DISTRIBUTION TO UNITED STATES NEWS WIRE SERVICES OR FOR DISSEMINATION
IN THE UNITED STATES/
VANCOUVER, Jan. 23, 2013 /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. (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
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
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
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 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.
Neil MacRae Santacruz Silver Mining Ltd. Email:email@example.com
Telephone: (604) 569-1609
SOURCE: SantaCruz Silver Mining Ltd.
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CO: SantaCruz Silver Mining Ltd.
ST: British Columbia
NI: MNG LOAN MNA NEWSTK
-0- Jan/23/2013 12:08 GMT
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