Santacruz Silver Mining Ltd (TSX-V:SCZ, OTC:SZSMF) announced that it has sold its shares in its non-core Mexican subsidiary Santacruz Holdings Ltd, which has 100% ownership in Impulsora Minera Santacruz, SA de CV, to a private Mexican group.
The Latin America-focused mineral properties developer said it has received a nominal cash consideration in addition to the buyer agreeing to accept certain obligations and liabilities from the company as consideration for the sale of Santacruz Holdings Ltd.
"The divestment of this non-core asset is expected to reduce our current liabilities and strengthen our balance sheet," Santacruz Silver Mining interim CEO Arturo Préstamo said in a statement.
"Going forward Santacruz will continue to assess opportunities to deleverage the company and improve its financial position," he added.
Santacruz Silver noted the sale of the non-core asset is part of the company's ongoing restructuring efforts as it aims to streamline its core business focus.
As well, the company announced the retirement of its chief operating officer, Wayne Corso, effective December 31, 2023.
Corso has agreed to continue offering his expertise to the company as a consultant, with responsibilities that will encompass overseeing ongoing projects, including providing guidance for key initiatives like the management of various operational aspects and acting as a ‘Qualified Person’ for the company, Santacruz Silver stated.
Santacruz Silver Mining is engaged in the operation, acquisition, exploration, and development of mineral properties in Latin America. Its Bolivian operations are comprised of the Bolivar, Porco and the Caballo Blanco Group, which consists of the Tres Amigos, Reserva and Colquechaquita mines.