Santacruz Silver Mining (TSXV: SCZ) has finally removed a substantial overhang from their cash flows. The company this morning announced that it has completed the accelerated payments that they were making to Glencore in connection with the purchase of their Bolivian assets.
The completion follows the company making both the fourth and fifth payments under an accelerated plan to pay off the debt for US$40 million. The final payment made, at US$15 million, is said to reflect the payments that were scheduled to be due September 5 and October 31, and follows three payments that were made earlier this year.
The accelerated payment option follows Santacruz last year reworking the terms of debt that were in place with Glencore in connection with the purchase of certain Bolivian assets back in 2021. Under those terms, the company could repay US$80 million to Glencore via annual US$10 million installments beginning in November 2025, or they could elect to exercise an accelerated option, which would see US$40 million repaid before November 1.
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By exercising the accelerated payment option, Santacruz managed to secure US$40 million in savings on the purchase price of their new Bolivian assets. Commenting on the matter, CEO Arturo Prestamo stated, “Completing the final payments to Glencore not only fulfills our obligations under the Acceleration Option but also underscores the strength of our balance sheet and prudent capital management.”
Santacruz Silver last traded at $2.02 on the TSX Venture.
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