It’s a quiet part of the year, but here are a couple updates… Santacruz Santacruz Silver has sold its San Felipe Project for $15 million. Here are the terms of the arrangement: From our valuation standpoint this is a huge positive, as we’ve ascribed minimal value, if any, to San Felipe and Gavilanes, while we’ve counted the company’s debt as a negative. It is quite possible that this transaction is related to another potential transaction, since the company has no immediate need for cash (thanks in large part to a weak Peso and strong lead/zinc markets). Two possibilities include the purchase of Veta Grande, the development/expansion of which management has told us is the best use of the company’s capital, or the sale of the company more generally as suggested by previously mentioned rumors. The two aren’t mutually exclusive. This development improves Santacruz’s balance sheet though it should have no
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