Santacruz Silver Mining Ltd. (TSXV: SCZ) entered into an agreement with a syndicate of underwriters led by Canaccord Genuity Corp. on a bought deal basis pursuant to a short form prospectus, 16,250,000 common shares of the Company at a price of C$1.85 per Common Share for gross proceeds of C$30,062,500.
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, exercisable for a period of up to 30 days after the closing date.
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 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 Exchange.
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