Santacruz closes second tranche of note offering

Executive Summary

• Santacruz Silver’s wholly‑owned Bolivian subsidiary, San Lucas S.A., completed the second tranche of its promissory‑note program, raising gross proceeds of 70 million bolivianos.
• The notes carry a 7.00% interest rate and mature on June 15 2026; combined with the first tranche closed in February 2025, total funds raised under the program now equal 140 million bolivianos.
• Proceeds are intended to diversify funding sources, strengthen the company’s capital structure, and support ongoing mining operations and expansion in Bolivia.

Key Details

• Offering: “Pagares Bursatiles San Lucas – Emision 2” under the San Lucas promissory‑notes issuance program.
• Gross proceeds: 70 million bolivianos (≈ US$10.1 million using an exchange rate of 6.96 bolivianos per US$1).
• Interest rate: 7.00% per annum, unsecured.
• Maturity date: June 15 2026.
• Total program size: Authorized up to 140 million bolivianos; with this second tranche the full authorized amount has now been raised.
• First tranche: 70 million bolivianos closed in February 2025 (referenced in the Feb. 27 2025 release).
• Use of proceeds: To diversify funding sources, reinforce capital structure, and fund ongoing mining operations, expansion projects, and community development initiatives in Bolivia.
• Execution venue: Bolivian stock market (Bolsa Boliviana de Valores), with strong demand from the local investment community.

Notable Quotes

“We are pleased to have successfully completed the second offering under the San Lucas promissory notes issuance program… It also marks a key step in our strategy to diversify funding sources … further strengthens Santacruz's capital structure, supporting ongoing efforts to deliver long‑term value for our shareholders.” – Arturo Prestamo Elizondo, Executive Chairman & CEO, Santacruz Silver Mining Ltd.