Santacruz Silver's Wholly Owned Bolivian Subsidiary, San Lucas, Successfully Completes Fourth Tranche of 70 Million Bolivian Bolivianos Promissory Note in the Bolivian Market, Further Advancing Transition from Prior Facility
Santacruz refinances Bolivian debt at 11% as the Bolivar recovery stalls and the stock halves from highs.
Santacruz Silver Mining Ltd. (SCZ) announced that its Bolivian subsidiary, San Lucas, has successfully completed the fourth tranche of its promissory note program, raising gross proceeds of 70 million Bolivian bolivianos (Bs). The instrument, identified as "Pagarés Bursátiles San Lucas - Emisión 4," is an unsecured promissory note priced at a 10.9985% annual interest rate with a maturity date of July 18, 2027.
The offering was fully subscribed by Bolivian institutional investors through the Bolsa Boliviana de Valores. This issuance replaces the second tranche, which was originally issued in August 2025 and is scheduled to be repaid in June 2026. The completion of this tranche restores the program to its maximum authorized capacity of Bs 140 million. Management described the transaction as evidence of local market confidence, disciplined capital management, and the strategic role of San Lucas in supporting operations and shareholder value. No new production, cost, or capital expenditure guidance was provided in this financing update.
Santacruz Silver Mining Ltd. (SCZ) successfully placed a local currency promissory note at approximately 11% interest, a move that underscores the company's continued access to Bolivian capital markets and supports its short-to-medium-term liquidity. The transaction represents a standard refinancing or rolling of local debt rather than a transformative capital event, reinforcing balance sheet flexibility without altering the company's operational trajectory, production guidance, or long-term valuation drivers.
The market has already priced in delays in the Bolivar recovery and broader silver price volatility, as evidenced by the stock's approximately 15% decline since the Q1 2026 earnings release. This financing activity does not change the fundamental risk/reward profile of the asset base.
Santacruz Silver Mining Ltd. operates a diversified multi-metal portfolio across Bolivia and Mexico, with key producing assets including the Bolivar, Porco, Caballo Blanco Group (Tres Amigos & Colquechaquita), and Reserva mines in Bolivia, which supports San Lucas ore sourcing, as well as the Zimapan mine in Mexico. San Lucas functions as a strategic ore sourcing and processing business, purchasing third-party concentrate and ore to maintain mill utilization and absorb fixed costs. The company’s portfolio is heavily weighted to silver and zinc, with lead and copper serving as significant co-products. In January 2026, Santacruz Silver completed a 4-for-1 share consolidation and dual-listed on the Nasdaq under the ticker SCZM to improve liquidity and broaden institutional access.