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Magellan Gold Arranges 900,000 in Bridge Loans for Purchase Option of Flotation Plant in Mexico
Magellan Gold Arranges 900,000 in Bridge Loans for Purchase Option of Flotation Plant in Mexico.
About this update from Magellan Copper And Gold Corp.
[{"type":"text","content":"\n\n\n\nMagellan Gold Arranges 900,000 in Bridge Loans for Purchase Option of Flotation Plant in Mexico\n\n\n\n\n\nMagellan Gold Arranges 900,000 in Bridge Loans for Purchase Option of Flotation Plant in Mexico\nPR Newswire\nRENO, Nevada, August 16, 2017\n\n\n\nRENO, Nevada, August 16, 2017 /PRNewswire/ --\n\nMagellan Gold Corporation (OTCQB: MAGE) ('Magellan' or 'the Company') is pleased to announce it has arranged $900,000 in irrevocable bridge loans in support of its option to purchase the SDA Mill located in the State of Nayarit, Mexico, from Rose Petroleum plc (AIM: ROSE) ('Rose'). The bridge loans are sufficient to complete the cash component of the purchase price and have the effect of extending the purchase option until closing of the transaction. As announced on August 1, 2017, in order to extend the option, the Company had the obligation to secure the bridge loans on or before August 15, 2017. Total consideration for the the 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.\n\n\"We are very pleased to have arranged the $900,000 in bridge loans, which greatly enhances the probability of a successful closing\", stated Pierce Carson, CEO. \"Our strategy following closing will be to resume processing operations, build production and increase cash flow.\n\n\"A key objective will be to secure high-grade feed sources,\" Carson continued. \"The mill lies within the rich Sierra Madre Occidental mineralized belt, which historically has yielded millions of ounces of precious metals and offers multiple high-grade gold and silver epithermal vein opportunities.\"\n\nIn order to extend the purchase option, Magellan also agreed to reimburse Rose for mill employee and maintenance costs of approximately $25,000 per month for August and September 2017. The August payment has been made, and the September payment is due by September 1, 2017.\n\nClosing of the transaction is subject to satisfaction of a number of conditions, the most important of which include legal restructuring of Mexican ownership of the SDA Mill, Rose's shareholder approval, and completion of the final definitive agreement. The parties are targeting closing to occur in October 2017, however there can be no assurance that the purchase of the mill will be completed.\n\nThe ...