Santacruz Silver Mining Ltd. said Aug. 8 that it struck a definitive deal to sell the Gavilanes silver project in Mexico to Marlin Gold Mining Ltd. for US$3.5 million.
In July, the parties signed a letter of intent for the sale of the project, which comprises 10 mining concessions covering 8,832 hectares within the central part of the Sierra Madre Occidental.
Santacruz will settle the outstanding balance owed on certain Gavilanes project claims by paying US$500,000 cash and issuing 1.25 million common shares to the property vendor.
Marlin will advance US$580,000 to Santacruz within three business days as a refundable deposit to settle the outstanding balance owed on some project claims.
The deal is expected to close later this month.
Santacruz intends to use a portion of the proceeds to settle the remaining outstanding debt owed to JMET LLC.