Business
Magellan Gold: Purchase of Mexican Flotation Plant to Close in October
Magellan Gold: Purchase of Mexican Flotation Plant to Close in October.
About this update from Magellan Copper And Gold Corp.
[{"type":"text","content":"\n\n\n\nMagellan Gold: Purchase of Mexican Flotation Plant to Close in October\n\n\n\n\n\nMagellan Gold: Purchase of Mexican Flotation Plant to Close in October\nPR Newswire\nRENO, Nevada, August 30, 2017\n\n\n\nRENO, Nevada, August 30, 2017 /PRNewswire/ --\n\nMagellan Gold Corporation (OTCQB: MAGE) (\"Magellan\" or \"the Company\") is pleased to announce its purchase of the SDA Mill, Nayarit State, Mexico, from Rose Petroleum plc (AIM: ROSE) is anticipated to be concluded in October 2017. Total consideration for 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\"Magellan and Rose are making rapid progress towards completion of the remaining closing items,\" said CEO Pierce Carson. \"These items include execution of the the definitive agreement, Rose's shareholder approval, and restructuring of Mexican ownership of the mill.\"\n\nAs announced August 16, 2017, Magellan arranged $900,000 in irrevocable bridge loans in support of its option to purchase the SDA Mill. The bridge loans are sufficient to complete the cash component of the purchase price. Magellan also is obligated to reimburse Rose for mill employee and maintenance costs of approximately $25,000 per month for August and September 2017. The August payment was made, and the September payment will be made on September 1, 2017.\n\nThe Company's strategy following closing will be to resume processing operations, build production and increase cash flow. A key objective will be to secure high-grade feed sources. 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\nAlthough the parties are targeting closing to occur in October 2017, there can be no assurance that the purchase of the mill will be completed.\n\nThe SDA Mill is a fully operational flotation plant that also includes a precious metals leach circuit and associated assets, licenses and agreements. The mill has the capacity to process ore at a rate of up to 200 tons per day. The mill has a ten-year operating history. Historically its operation has been based on sales of flotation concentrates to smelters, and payment for precious metals content.  ...