Santacruz Silver Completes $40 Million Glencore Payment Programme

• Completed final $15 million payment to Glencore, satisfying full $40 million Acceleration Option commitment
• Payment programme included five instalments from March to October 2025
• Company reports $40 million in cost savings through the Acceleration Option structure
• Payment completion fulfils Base Purchase Price obligations for Bolivian asset acquisition
• All scheduled payments met according to established timeline

Santacruz Silver Mining Ltd. (TSX.V: SCZ) is a silver and multi-metal producer focused on Latin America, operating in Bolivia and Mexico. The company's business encompasses operation, acquisition, exploration, and development of mineral properties in the region.

In Bolivia, Santacruz operates the Bolivar, Porco, and Caballo Blanco mining complexes. The Caballo Blanco complex includes the Tres Amigos and Colquechaquita mines. The company also operates the Reserva mine, which supplies the San Lucas ore sourcing and trading business, and oversees the Soracaya exploration project. In Mexico, the company operates the Zimapán mine.

Payment Completion and Financial Obligation

Santacruz completed its final $15 million payment to Glencore on schedule, representing the September 5 and October 31, 2025 instalments. This payment followed previous instalments made on March 20, May 6, and July 7, 2025. The payment programme totalled $40 million under the Acceleration Option structure.

The company structured the payments across five instalments over an eight-month period from March to October 2025. Each payment was made according to the predetermined schedule outlined in previous company announcements. The payment structure was established as part of the original acquisition agreement for the Bolivian assets.

The completion eliminates the Base Purchase Price obligation from the company's outstanding commitments. The payment programme represents the full satisfaction of financial terms agreed upon in the Bolivian asset acquisition. All payments were made within the specified timeframes without modification to the original schedule.

Cost Structure and Financial Terms

The Acceleration Option enabled Santacruz to achieve $40 million in cost savings compared to alternative payment structures. The company reports these savings were generated through the accelerated payment approach rather than following standard acquisition terms. The financial benefit represents the difference between the Acceleration Option price and the original purchase structure.

CEO Arturo Préstamo stated:

"Completing the final payments to Glencore not only fulfils our obligations under the Acceleration Option but also underscores the strength of our balance sheet and prudent capital management."

The payment completion was made possible through the company's available cash resources and operational cash flow generation. Santacruz maintained its payment schedule without requiring external financing or debt arrangements. The company's ability to meet these obligations demonstrates its current financial capacity.

Bolivian Operations and Asset Portfolio

The payment completion secures Santacruz's ownership of its Bolivian mining operations under the agreed terms. The Bolivian assets include multiple operational mines and one exploration project across different geographical areas. These facilities represent the company's primary operational base outside of Mexico.

The Bolivar, Porco, and Caballo Blanco complexes provide current production capability for the company's Bolivian operations. The Reserva mine supports the San Lucas ore sourcing and trading activities. The Soracaya project remains in exploration phase with development potential subject to future evaluation and market conditions.

Préstamo noted:

"With $40 million now fully satisfied, we have generated significant savings and are well positioned to advance our growth strategy."

The company thanked Glencore for their collaborative approach throughout the payment process.

Next Steps and Obligations

With the Base Purchase Price now satisfied, Santacruz has completed its primary financial obligations under the Bolivian asset acquisition agreement. The company has eliminated this $40 million commitment from its balance sheet as of October 2025. No additional payments are required under the current Acceleration Option terms.

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