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Magellan Gold Makes US$100,000 Payment Towards Acquisition of Operating Mill in Mexico
Magellan Gold Makes US$100,000 Payment Towards Acquisition of Operating Mill in Mexico.
About this update from Magellan Copper And Gold Corp.
[{"type":"text","content":"\n\n\n\nMagellan Gold Makes US$100,000 Payment Towards Acquisition of Operating Mill in Mexico\n\n\n\n\n\nMagellan Gold Makes US$100,000 Payment Towards Acquisition of Operating Mill in Mexico\nPR Newswire\nRENO, Nevada, June 1, 2017\n\n\n\nRENO, Nevada, June 1, 2017 /PRNewswire/ --\n\nMagellan Gold Corporation (OTCQB: MAGE) ('Magellan' or 'the Company') is pleased to announce it has made a further US$100,000 option payment for a 60-day extension under its MOU with Rose Petroleum plc (AIM: ROSE). The MOU gives Magellan the right to purchase an operating floatation plant and associated assets, licenses and agreements (together, the 'SDA Mill') located in the State of Nayarit, Mexico, for a total consideration of US$1.5 million. The mill has produced precious metals for ten years and its normal operation is based on sales of floatation concentrates to smelters. The Company paid an initial US$50,000 option payment and announced the MOU on March 6, 2017.\n\n\"The potential SDA Mill acquisition will transform Magellan into a production company, which we believe will create significant value for our stockholders\", said Pierce Carson, CEO. \"Our strategy following the acquisition will be to expand production from resources within the regional gold belt where the mill is located.\"\n\nUnder the terms of the MOU, the $100,000 non-refundable extension payment will be credited against the purchase price if the transaction closes. The $1.5 million purchase price for the SDA Mill is payable as to $1.0 million in cash and $500,000 in restricted common stock of Magellan.\n\nConsummation of the SDA Mill acquisition is subject to numerous conditions, including the parties entering into a separate asset purchase agreement, satisfactory due diligence, the Company completing a financing, an audit of the mill's financial statements, regulatory approvals and other conditions customary to transactions of this nature. There can be no assurance that the purchase of the mill will be completed.\n\nAbout Magellan Gold Corporation\nMagellan Gold Corporation (OTCQB: MAGE) is a US public enterprise focused on the exploration and development of precious metals. The Company's two mineral properties are located in Arizona and in Peru.\nThe 100% owned Silver District Property in southwest Arizona comprises over 2,000 acres covering the heart of the historic Silv...