Santacruz Silver Acquires New 500-Tonne-Per-Day Milling Facility to Unlock Further Production Growth in Bolivia

Santacruz Silver Mining Ltd. has completed the acquisition of a 500-tonne-per-day (tpd) milling facility in Bolivia for a total investment of approximately US$14 million. The asset consists of two 250-tpd processing circuits equipped with selective flotation systems designed for lead, zinc, and high-grade silver recovery. Located approximately 5 kilometers from the Reserva mine, the facility will be dedicated to processing ore from the company’s wholly-owned San Lucas subsidiary.

The transaction structure includes a US$9.2 million purchase price, of which US$4.6 million was paid upfront and the remaining US$4.6 million is payable on November 8, 2026. An additional US$4.8 million has been allocated to milling upgrades and working capital through commissioning. Commissioning is targeted for the fourth quarter of 2026, with commercial production expected by the end of that year.

The acquisition is intended to free up capacity at Santacruz’s existing three-mine processing facilities for internal operations, while enabling San Lucas to scale third-party ore sourcing and standalone production. Management expects the acquisition to support increased consolidated production in 2027 and demonstrate operating leverage across the Bolivian platform.

Santacruz Silver Mining Ltd. (SCZ) announced a US$14 million capital expenditure aimed at removing a strategic bottleneck, rather than reporting an earnings surprise or engaging in transformative mergers and acquisitions. The investment, which represents approximately 1.6% of the company’s current US$901 million market capitalization, is fully funded from existing liquidity, specifically the $72.8 million held in cash and securities.

This move aligns with the company’s previously disclosed strategy to scale the San Lucas operation and free up internal mill capacity. It does not constitute a new guidance raise but serves as a logical enabler of the stated 2027 production growth trajectory. The market reaction is likely to be muted, as the stock has already priced in the Nasdaq/TSX graduation and strong H1 2026 margins.

Santacruz Silver Mining Ltd. is a multi-asset, multi-metal producer operating across Bolivia and Mexico, functioning as Bolivia's largest underground mining operator with a vertically integrated platform spanning mining, ore sourcing, and processing. The company’s primary commodities are silver and zinc, with lead and copper serving as significant by-products.

The Bolivian portfolio includes the Bolivar Mine (1,000 tpd), Porco Mine (1,200 tpd), Caballo Blanco Group (1,300 tpd), San Lucas (100% ore sourcing), and Soracaya (development). In Mexico, the company operates the Zimapan Mine (3,200 tpd), which was historically operated by Peñoles.