Financings
Santacruz Silver's Wholly Owned Bolivian Subsidiary, San Lucas, Successfully Completes Oversubscribed Bs 70M Promissory Note Issuance Under New Program, Advancing Transition from Prior Facility
Santacruz Silver Secures Local Liquidity Amidst Production Recovery and Nasdaq Integration
Executive Summary
- Financing Event: Santacruz Silver's Bolivian subsidiary, San Lucas S.A., completed a third promissory note offering ("Pagarés Bursátiles San Lucas – Emisión 3").
- Proceeds: Gross proceeds of Bs 70 million (approximately US$10.1 million at BOB 6.96/USD).
- Terms: Annual interest rate of 10.8168%, unsecured notes maturing on March 22, 2027.
- Market Reception: Fully placed in ~15 minutes; oversubscribed by ~40%; priced above par.
- Program Status: The program is fully utilized at its maximum authorized amount of Bs 140 million (two tranches of Bs 70M each). The first offering was repaid on February 18, 2026.
- Use of Proceeds: Implied support for San Lucas ore-sourcing and trading operations and broader Santacruz capital needs in Bolivia.
- Management Commentary: CEO Arturo Préstamo cited the speed of execution and oversubscription as reflections of confidence from Bolivian capital markets in the company's business model.
Material Impact
- Liquidity Confirmation: The successful oversubscription validates local investor confidence, which is crucial for a mining operation with significant assets in Bolivia (San Lucas, Bolivar). It confirms access to local currency funding without immediate reliance on equity dilution or expensive USD debt.
- Debt Profile: While the interest rate (~10.8%) is higher than typical senior secured bank debt, it is unsecured and denominated in Bolivianos, matching revenue streams from ore sourcing in Bolivia. This mitigates FX risk compared to USD-denominated debt for local operations.
- Operational Context: The financing supports ongoing operations while the company navigates the recovery of the Bolivar mine (flooding impact). It does not fund a major expansion but sustains current cash flow needs during the production dip.
- Market Expectation: This issuance was part of an existing program announced in August 2025 (Tranche 2). Therefore, it is largely expected by the market and analysts following the company's capital structure strategy.
- Verdict: The news is positive for balance sheet stability but does not fundamentally alter the investment thesis or growth trajectory. It is a routine execution of a known facility with strong local demand.
SCZ · Price
Company Overview
- Company: Santacruz Silver Mining Ltd. (TSXV: SCZ; NASDAQ: SCZM).
- Flagship Projects:
- Bolivia: Bolivar Mine (JV with COMIBOL), Porco, Caballo Blanco Group (Tres Amigos & Colquechaquita), San Lucas Group (Reserva mine + ore sourcing).
- Mexico: Zimapán Mine.
- Development Projects: Soracaya Project (Bolivia) – Preliminary mine plan completed; permitting underway for potential production decision.
- Operations Status: Producing silver, zinc, lead, and copper. San Lucas Group includes a significant ore-sourcing business that buffers against mine-specific disruptions.
- Recent Milestone: Full repayment of Glencore acquisition debt ($40M) completed in October 2025; Nasdaq listing commenced January 2026.
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Jun 29, 2026 · 17:31