Santacruz Silver Acquires New 500-Tonne-Per-Day Milling Facility to Unlock Further Production Growth in Bolivia
Santacruz adds 500 tpd of Bolivian milling capacity, aiming to boost both third-party processing and in-house mine production from 2027.
Rhea-AI Summary
Santacruz Silver (SCZM) has acquired a 500-tonne-per-day milling facility in Bolivia, comprising two 250-tpd processing circuits with selective flotation for lead and zinc with high-grade silver contents. The plant will be dedicated to ore from Santacruz’s wholly owned Bolivian subsidiary, San Lucas, supporting expansion of the company’s third-party ore-sourcing business.
By shifting San Lucas materials to this facility, Santacruz will free capacity at its three existing mine processing plants to increase production from its own Bolivian operations. The mill is located about 5 kilometres from the Reserva mine in the Caballo Blanco group, providing logistical advantages and reinforcing the company’s vertically integrated model in Bolivia. Commissioning is expected in Q4 2026 with commercial production targeted by year-end 2026. Total investment is expected to be about US$14 million, including a US$9.2 million purchase price and US$4.8 million for upgrades and working capital.
Positive
- 500 tpd of new milling capacity dedicated to San Lucas ore
- Expected total investment of US$14 million, including acquisition and commissioning
- Purchase price of US$9.2 million split into two equal payments, easing near-term cash outlay
- Additional US$4.8 million earmarked for milling upgrades and working capital through commissioning
- Commissioning targeted for Q4 2026 with commercial production by year-end 2026, supporting 2027 output
- Company anticipates increased consolidated production in 2027 from added processing capacity
Negative
- Total cash commitment of about US$14 million increases capital spending requirements
- Remaining US$4.6 million purchase payment due November 8, 2026 creates a future cash obligation
News Explained
The acquisition is complete, but US$4.6 million remains payable on November 8 and the facility is not yet commercially operational.
Santacruz reports that it has completed the acquisition, but receipt of the facility is expected on
The company has paid
In practical terms, the transaction is complete as an acquisition but has not yet reached the operating stage that would make the facility commercially productive.
The stated milestones to monitor are facility receipt on
Key Figures
- Milling capacity
- 500 tonnes per day
- Acquired Bolivian milling facility
- Commissioning
- Q4 2026
- Expected facility commissioning
- Commercial production
- Year-end 2026
- Expected facility milestone
- Total investment
- Approximately US$14 million
- Acquisition, commissioning and production-readiness costs
- Total purchase price
- US$9.2 million
- Milling facility acquisition
- Paid toward purchase price
- US$4.6 million
- Paid at announcement
- Remaining purchase payment
- US$4.6 million
- Payable November 8, 2026
- Upgrades and working capital
- US$4.8 million
- Allocated through commissioning and commercial production
Key Terms
processing circuits technical
AI-generated analysis. How Rhea-AI works. Not financial advice.
Acquisition Provides Dedicated Processing Capacity for San Lucas While Releasing Additional Capacity Across Existing Mines
Vancouver, British Columbia--(Newsfile Corp. - September 18, 2026) - Santacruz Silver Mining Ltd. (NASDAQ: SCZM) (TSXV: SCZ) ("Santacruz" or the "Company") is pleased to announce that it has completed the acquisition of a 500-tonne-per-day ("tpd") milling facility located in Bolivia, comprising two 250-tonne-per-day processing circuits, each equipped with selective flotation systems for the recovery of lead and zinc with high-grade silver contents. The newly acquired facility will be solely dedicated to processing ore sourced through the Company's wholly-owned Bolivian subsidiary, San Lucas, providing additional milling capacity to support continued expansion of its third-party ore-sourcing business.
By transitioning materials from San Lucas to the acquired facility, Santacruz will free up capacity at its existing three mine processing facilities, allowing the Company to advance its mine development plans and increase production from its own operations in Bolivia without internally competing for available processing capacity.
Strategically located approximately 5 kilometres from Santacruz's Reserva mine, part of the Company's Caballo Blanco group of mines, the acquired facility provides logistical and operational advantages as Santacruz continues to develop and expand its Bolivian asset base. The acquisition also strengthens Santacruz's vertically integrated operating model in Bolivia by providing greater flexibility and control over the processing of third-party sourced ore. Together with the Company's existing facilities, it establishes an expanded processing platform in one of Santacruz's key operating districts, supporting longer-term production and development plans.
The facility is expected to be commissioned during the fourth quarter of 2026 and to reach commercial production by year-end 2026. Commissioning activities will include the testing and optimization of the milling and selective flotation circuits, followed by the ramp-up of operations toward commercial production. The total investment in the milling facility is expected to be approximately US
Arturo Préstamo, Executive Chairman and CEO of Santacruz, commented: "This acquisition is a win-win for Santacruz's operating platform. The addition of 500 tpd of milling capacity gives San Lucas a clear path to continue increasing its volumes, while freeing up capacity at our existing milling facilities for ore from our own mines. This will allow our mining operations to advance their development and production growth plans without being constrained by milling capacity. This is exactly the type of operating leverage we look for at Santacruz-one investment that allows two parts of our business to grow at the same time."
Mr. Préstamo continued: "The new facility also creates a significant opportunity to accelerate growth across our Bolivian operations. We expect the additional processing capacity, together with ongoing mine development, operational optimization initiatives and increased ore availability, to support continued production growth across Santacruz's platform. As a result, we anticipate increased consolidated production in 2027, while San Lucas is expected to further expand its standalone production, demonstrating the scalability and operating leverage of the Company's vertically integrated Bolivian platform. Importantly, this acquisition is consistent with Santacruz's strategy of leveraging our existing infrastructure, expanding processing capacity and maximizing production growth while maintaining a disciplined approach to capital allocation."
Transaction Details
The Company has paid US
About Santacruz Silver Mining Ltd.
Santacruz Silver is engaged in the operation, acquisition, exploration, and development of mineral properties across Latin America. In Bolivia, the Company operates the Bolivar, Porco, and Caballo Blanco mining complexes, with Caballo Blanco comprising the Tres Amigos and Colquechaquita mines. The Reserva mine, whose production is provided to the San Lucas ore sourcing and trading business, is also located in Bolivia. Additionally, the Company oversees the Soracaya exploration project. In Mexico, Santacruz operates the Zimapan mine.
'signed'
Arturo Préstamo Elizondo,
Executive Chairman and CEO
For further information, please contact:
Arturo Préstamo
Santacruz Silver Mining Ltd.
Email: info@santacruzsilver.com
Telephone: +52 81 83 785707
Andrés Bedregal
Santacruz Silver Mining Ltd.
Email: info@santacruzsilver.com
Telephone: +591 22444849
Eduardo Torrecillas
Santacruz Silver Mining Ltd.
Email: info@santacruzsilver.com
Telephone: +591 22444849
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) nor the Nasdaq Capital Market LLC accepts responsibility for the adequacy or accuracy of this news release. No stock exchange, securities commission or other regulatory authority has approved or disapproved the information contained herein.
Cautionary and Forward-Looking Statements
This release includes certain statements and information that may constitute forward-looking information within the meaning of applicable Canadian securities laws. Forward-looking statements relate to future events or future performance and reflect the expectations or beliefs of management of the Company regarding future events. Generally, forward-looking statements and information can be identified by the use of forward-looking terminology such as "intends" or "anticipates", or variations of such words and phrases or statements that certain actions, events or results "may", "could", "should", "would" or "occur". This information and these statements, referred to herein as "forward-looking statements", are not historical facts, are made as of the date of this news release and include without limitation, statements regarding the expected commissioning and commercial production timeline for the newly acquired milling facility, the anticipated total investment of approximately US
Such forward-looking information and statements are based on numerous assumptions, including among others, that the acquired milling facility will be commissioned on schedule and achieve commercial production by year-end 2026, that the total investment will not materially exceed the anticipated US
These forward-looking statements involve numerous risks and uncertainties and actual results might differ materially from results suggested in any forward-looking statements. These risks and uncertainties include, among other things, the risk that the commissioning of the milling facility may not be completed on the anticipated timeline or at all, that costs may exceed expectations, that the facility may not achieve the expected processing capacity, and that market, operational or regulatory conditions may adversely affect production growth plans.
Although management of the Company has attempted to identify important factors that could cause actual results to differ materially from those contained in forward-looking statements or forward-looking information, there may be other factors that cause results not to be as anticipated, estimated or intended. There can be no assurance that such statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Accordingly, readers should not place undue reliance on forward-looking statements and forward-looking information. Readers are cautioned that reliance on such information may not be appropriate for other purposes. The Company does not undertake to update any forward-looking statement, forward-looking information or financial outlook that are incorporated by reference herein, except in accordance with applicable securities laws. We seek safe harbour.
To view the source version of this press release, please visit https://www.newsfilecorp.com/release/314945
FAQ
AI-generated questions and answers. How Rhea-AI works. Not financial advice.
How will the new milling facility change Santacruz’s processing configuration in Bolivia?
The new 500-tpd facility will be used exclusively to process ore from Santacruz’s San Lucas subsidiary. This shift is expected to free processing capacity at the company’s three existing mine plants in Bolivia, allowing more of their throughput to be devoted to ore from Santacruz’s own mines rather than San Lucas material.
Where is the acquired milling facility located relative to Santacruz’s existing operations?
The facility is located approximately 5 kilometres from Santacruz’s Reserva mine, which is part of the Caballo Blanco group of mines in Bolivia. The company states that this proximity provides logistical and operational advantages as it continues to develop its Bolivian asset base.
What is the payment schedule and additional spending plan for the acquisition?
Santacruz has already paid US$4.6 million toward the US$9.2 million purchase price. The remaining US$4.6 million is payable on November 8, 2026, one month after the milling facility is expected to be received on October 8, 2026. A further US$4.8 million is planned for milling upgrades and working capital through commissioning and the achievement of commercial production.
What processing technology does the new mill use?
The facility consists of two 250-tonne-per-day processing circuits, each equipped with selective flotation systems designed for the recovery of lead and zinc that contain high-grade silver.