Santacruz Silver Mining Ltd (TSX-V:SCZ, OTC:SZSMF) said Tuesday it has made a $7.5 million payment to Glencore as part of a structured plan to accelerate its acquisition of Bolivian mining assets and lock in cost savings.
This marks the second installment under the company’s previously announced Acceleration Option and follows an initial $10 million payment made on March 20. The remaining payments, totalling $22.5 million, are scheduled to be completed by October 31.
The fast-tracked purchase allows Santacruz to yield estimated savings of $40 million over the life of the assets.
Chairman Arturo Préstamo: "This second payment to Glencore demonstrates our ability to honor our commitments while maintaining a strong balance sheet and cash position.
"We remain focused on driving shareholder value through prudent capital management and operational excellence."
Santacruz is focused on the operation, acquisition, exploration and development of mineral properties in Latin America.
Its Bolivian operations include the producing Bolivar and Porco mines, and the Caballo Blanco Group, which comprises the Tres Amigos and Colquechaquita mines.
It also operates the Soracaya exploration project and the San Lucas ore sourcing and trading business in Bolivia. The company’s Zimapan mine is located in Mexico.