Business
Magellan Gold Announces Expansion Into Precious Metals Royalty Opportunities with Creation of M Gold Royalty Subsidiary
Magellan Gold Announces Expansion Into Precious Metals Royalty Opportunities with Creation of M Gold Royalty Subsidiary.
About this update from Magellan Copper And Gold Corp.
[{"type":"text","content":"\n Planning to raise capital through a private offering for M Gold Royalty WALLACE, ID, Aug. 25, 2020 (GLOBE NEWSWIRE) -- via NEWMEDIAWIRE -- Magellan Gold Corporation (OTCQB: MAGE) (“Magellan” or the “Company”), a precious metals exploration and development company, announced today that the Company has created a new wholly owned subsidiary, M Gold Royalty (“M Gold”), to expand into the royalty business. M Gold Royalty will engage in organically generating royalties derived from a portfolio of mineral property interests in North America.  Royalties from this portfolio will be complemented by royalties from selected acquisitions as well as income from other strategic investments.  “We are excited to enter the royalty business,” said Mike Lavigne, President of Magellan Gold. “M Gold’s three-pronged strategy gives us the flexibility to generate royalty streams and other potential cash flow sources by leveraging our expertise in mineral exploration and development and identifying high-potential assets.  We believe this effort could create value for our shareholders by targeting transactions that might be too small for the larger, more established royalty companies.  To capitalize on acquisition and investment opportunities, M Gold intends to raise capital through one or more private offerings; however, at this time, we have yet to secure any commitments for such funding.” Subject to successfully raising the necessary capital, M Gold Royalty’s business strategy comprises three core activities that have the potential to generate royalties and other income: Royalty Generation:  M Gold plans to leverage its technical expertise to acquire prospective properties on open ground, and to build value through low-cost work programs and targeting.  M Gold hopes to be able to participate in project upside at no additional cost, with the potential for future royalty payments upon the commencement of production. Royalty Acquisitions:  M Gold plans to selectively acquire royalty interests in quality assets that range from producing mines to exploration projects. The Company’s royalty generation activities could support the timely identification of acquisition opportunities. Strategic Investments:  M Gold plans to make strategic...