Business
Magellan Completes Purchase of SDA Mill, Mexico
Magellan Completes Purchase of SDA Mill, Mexico.
About this update from Magellan Copper And Gold Corp.
[{"type":"text","content":"\n\n\n\nMagellan Completes Purchase of SDA Mill, Mexico\n\n\n\n\n\nMagellan Completes Purchase of SDA Mill, Mexico\nPR Newswire\nRENO, Nevada, December 1, 2017\n\n\n\nRENO, Nevada, December 1, 2017 /PRNewswire/ --\n\nMagellan Gold Corporation (OTCQB: MAGE) (\"Magellan\" or \"the Company\") is pleased to announce that on November 30, 2017, it completed the purchase of the SDA Mill, Nayarit State, Mexico, from Rose Petroleum plc (AIM: ROSE).\n\nTotal consideration for the purchase of the SDA Mill was US$1.5 million, consisting of $1.0 million in cash and $500,000 in Magellan stock, of which $100,000 in cash was paid in June 2017. In August 2017, Magellan arranged $900,000 in bridge loans in support of the purchase.\n\nIn order to satisfy the requirement to issue $500,000 in stock as part of the $1.5 million purchase price, Magellan will issue to Rose 14,200,834 restricted shares of its common stock, the number of shares based on the volume weighted average price of Magellan's stock for the thirty calendar days preceding November 30, 2017. Following the stock issuance, Rose will own approximately 15% of the Company's issued and outstanding stock but will have no role on the board of directors or management. Magellan will have the option to re-purchase the stock for $500,000 during the six month period following closing, and for $550,000 during the subsequent six month period. Magellan's re-purchase option if not exercised will expire one year and five business days following the closing date. Under SEC regulations, the restrictions on sale can be removed after twelve months and the stock then would become freely tradable.\n\nPierce Carson, CEO commented, \"We are pleased to have concluded the purchase of the SDA Mill and wish to thank Rose for their efforts in effecting a smooth transition of assets and personnel. We are delighted to welcome Rose as a major shareholder of Magellan.\"\n\n\"Acquisition of the SDA Mill will transform Magellan into a production company and is an exciting development for our shareholders,\" continued Carson. \"In November, we began limited processing operations under an interim toll agreement to process third-party ore. We intend to continue our strategy of resuming processing operations, building production and increasing cash flow.\"\n\n\"Now that we own the mill, we are focused on acquiring nearby so...