Santacruz Silver Mining Ltd. (TSXV: SCZ) has announced that is has entered into a binding term sheet with certain Glencore entities to amend some transaction documents in connection with the prior sale by Glencore of its Bolivian mining assets to Santacruz.
Arturo Préstamo, executive chairman, and Interim CEO commented, “This amended agreement represents a significant milestone for the company, as it strengthens our balance sheet and equips us with the financial flexibility necessary to effectively manage our business. We continue to value Glencore as our partner and look forward to maintaining a collaborative relationship with them.”
Santacruz and Glencore have agreed to terms including:
- The total consideration payable by Santacruz to Glencore under the term sheet will be in lieu of all present and future amounts owing or payable by Santacruz under the transaction documents entered into pursuant to the transaction
- Subject to the acceleration option, Santacruz will pay up to US$80M in cash to Glencore in eight equal annual instalments of US$10M each with the first payment being made on or before 1 November 2025
- Santacruz can exercise an option to accelerate the payment of the outstanding balance of the base purchase price in full at any time, such prepayment amount will be US$40M if exercised prior to 1 November 2025 and shall decrease by US$2M for each annual instalment of US$10M that has been paid by Santacruz.
The completion of the transactions contemplated by the term sheet are subject to approval of the TSX Venture Exchange.
To find out more, please visit www.santacuzsilver.com
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