Santacruz Silver Mining (TSXV: SCZ) has picked up a 500 tonne per day milling facility in Bolivia. The company says the added processing capacity will unlock growth on two fronts at once.
The mill has two 250 tonne per day circuits with selective flotation for lead, zinc and silver recovery. It sits roughly 5 kilometres from the company’s Reserva mine, part of its Caballo Blanco group.
Santacruz is paying US$9.2 million for the facility. Half of that, US$4.6 million, has already been paid, and the remaining US$4.6 million is due November 8, 2026. Another US$4.8 million is set aside for mill upgrades and working capital, which puts the total outlay at about US$14 million.
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The logic centres on San Lucas, the company’s third-party ore sourcing business. San Lucas material currently shares space at Santacruz’s 3 existing mine processing facilities. Moving it to the new plant frees those mills to handle more ore from the company’s own mines.
“This acquisition is a win-win for Santacruz’s operating platform,” said Executive Chairman and CEO Arturo Préstamo. “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.”
He added that the deal lets the company’s mining operations advance their growth plans “without being constrained by milling capacity.”
Santacruz expects to take possession of the facility on October 8. Commissioning is slated for the fourth quarter, with commercial production targeted by year-end.
Looking further ahead, the company expects higher consolidated production in 2027, and San Lucas is expected to grow its own output. Préstamo framed the move as a way to get more out of existing infrastructure “while maintaining a disciplined approach to capital allocation.”
Santacruz Silver last traded at $12.45 on the TSX Venture.
