Business
Definitive Agreement Signed for Acquisition of SDA Mill, Mexico
Definitive Agreement Signed for Acquisition of SDA Mill, Mexico.
About this update from Magellan Copper And Gold Corp.
[{"type":"text","content":"\n\n\n\nDefinitive Agreement Signed for Acquisition of SDA Mill, Mexico\n\n\n\n\n\nDefinitive Agreement Signed for Acquisition of SDA Mill, Mexico\nPR Newswire\nRENO, Nevada, September 11, 2017\n\n\n\nRENO, Nevada, September 11, 2017 /PRNewswire/ --\n\nMagellan Gold Corporation (OTCQB: MAGE) (\"Magellan\" or \"the Company\") is pleased to announce that Magellan and Rose Petroleum plc (AIM: ROSE) have signed a definitive and binding stock purchase agreement (\"SPA\") in respect of Magellan's acquisition of Rose's mineral processing mill operation in San Dieguito de Arriba, Nayarit State, Mexico and its associated assets, licenses and agreements (together, the \"SDA Mill\"). The purchase of the mill is expected to close in October 2017.\n\n\"Signing of the SPA is a major milestone towards completion of the closing items,\" said CEO Pierce Carson. \"The other major items are well in hand and include Rose's shareholder approval, which is expected to occur at a General Meeting of Shareholders convened on September 18, 2017, and restructuring of Mexican ownership of the SDA Mill, which is in process and anticipated to be concluded in October 2017.\n\n\"Acquisition of the SDA Mill will transform Magellan into a production company and will be an exciting development for our shareholders,\" continued Carson. \"Our strategy following the acquisition will be to resume processing operations, build production and increase cash flow.\"\n\nTotal consideration for the SDA Mill purchase is US$1.5 million, consisting of $1.0 million in cash and $500,000 in Magellan stock, of which $100,000 in cash already has been paid. As announced August 16, 2017, Magellan has arranged $900,000 in irrevocable bridge loans in support of its option to purchase the mill. The bridge loans are sufficient to complete the cash component of the purchase price.\n\nAlthough the parties anticipate closing to occur in October 2017, there can be no assurance that the purchase of the mill will be concluded.\n\nThe SDA Mill is a fully operational flotation plant that also includes a precious metals leach circuit and associated assets, licenses and agreements. The mill has the capacity to process ore at a rate of up to 200 tons per day. The mill has a ten-year operating history. Historically, its operation has been based on sales of flotation concentrates t...