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Magellan Gold Corporation Enters into an Agreement to Acquire the Santa Maria Mine from Golden Minerals Company
Magellan Gold Corporation Enters into an Agreement to Acquire the Santa Maria Mine from Golden Minerals Company.
About this update from Magellan Copper And Gold Corp.
[{"type":"text","content":"RENO, NV / ACCESSWIRE / October 17, 2019 / Magellan Gold Corp (OTCQB:MAGE) (the "Company") has entered into a binding agreement, dated October 16, 2019, with Golden Minerals Company (AUMN")("Golden") for the assignment of the option (the "Transaction") to earn a 100% interest in the Santa Maria Project in Chihuahua State, Mexico. The agreement provides for a 150-day period to complete due diligence and secure adequate funding and enter into a definitive agreement (the "Definitive Agreement ") which will formalize the Transaction. Golden currently owns a 100% interest in the Santa Maria Mine, subject to US$200,000 in property payments.Terms of the TransactionMagellan Gold Corporation must:Complete a cash payment of US$1,000,000 to Golden Minerals at closing.Pay Golden a 6.5% NSR based royalty from all production until a total of US$3,000,000 has been paid under the royalty agreement, the royalty is then reduced to a 3.0% NSR based royalty for the balance of the property life.The agreement includes a two-kilometer "Area of Interest clause".The Santa Maria ProjectThe project is located 39 kilometers southwest of Parral, Chihuahua. The mine was operated in the 1940's and had mining activity in 2015 and 2016. Golden Minerals Company drilled 58 exploration holes, approximately 10,000 meters of core, and cut 2,186 channel samples on the surface and in the existing mine workings. The following resource is part of a 43-101 Preliminary Economic Assessment prepared by Tetra Tech, Inc. of Golden, Colorado for Golden Minerals in November of 2018.Mineral Resource EstimateCATEGORY180-AgEq gpt CutoffTONNESAu - gptAg - gptGOLDOunces (k)SILVEROunces (M)Measured42,0000.832711.130.37Indicated170,0001.042915.701.59Inferred261,0000.902727.612.30NOTES:(1) Cutoff grade and Ag equivalent calculated using metal prices of $16.63 and $1,238 per troy ounce of Ag and Au with a ratio of 74:1, the three-year trailing average as of the end of May 2018;(2) Cutoff applied to diluted Ag equivalent blocks grades using recoveries of 90% and 80% Ag and Au;(3) Reported Measured and Indicated Mineral Resources are equivalent to mineralized material under SEC Industry Guide 7, Inferred Mineral Resource is not a recognized category under SEC Industry Guide 7; and(4) Columns may not total due to rounding.Magellan ...