Santacruz Silver Mining Ltd. (TSXV:SCZ) signed term sheet to acquire Bolivian Zinc Assets of Glencore Finance (Bermuda) Ltd. and Glencore International AG on July 22, 2021. Santacruz Silver Mining Ltd. (TSXV:SCZ) signed an agreement to acquire Bolivian Zinc Assets of Glencore plc (LSE:GLEN) for $110 million on October 11, 2021. The consideration consists of $20 million as initial consideration and $90 million deferred consideration. Transaction also involves the acquisition of a 100% interest in the Sinchi Wayra business which includes the producing Caballo Blanco mining complex, the Soracaya exploration project located in Bolivia and the San Lucas ore sourcing and trading business, a 45% interest in the producing Bolivar and Porco mining operations. Deal will be financed by $90 million of senior secured non-revolving term facility. Incase of financing failure, Santacruz Silver shall pay a termination fee of $2 million. Completion of the sale is conditional on, without limitation, receipt of certain regulatory approvals in Canada and is expected to occur within the next three months. At completion, Glencore will enter into a number of net smelter royalty agreements each at 1.5% in respect of the Bolivian mining business with Santa Cruz and Glencore will also retain offtake rights for life of mine in respect of the production from the relevant mines.
As per share purchase adjustments, Initial upfront payment of $20 million is adjusted to $12 million and will be paid by Santacruz to Glencore within 30 days of closing and will be paid from working capital. Thus the total deal value post adjustments is $100 million. BMO Capital Markets is acting as financial advisor to Glencore in connection with the transaction. McCarthy Tétrault LLP acted as legal advisor to Glencore. DuMoulin Black LLP acted as legal advisor, Guevara & Gutierrez SC acted as accountant and Maxit Capital LP acted as financial advisor to Santacruz Silver Mining.

Santacruz Silver Mining Ltd. (TSXV:SCZ) completed the acquisition of Bolivian Zinc Assets of Glencore Finance (Bermuda) Ltd. and Glencore International AG on March 18, 2022.