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Magellan Gold Signs Memorandum of Understanding to Acquire Operating Mill in Mexico
Magellan Gold Signs Memorandum of Understanding to Acquire Operating Mill in Mexico.
About this update from Magellan Copper And Gold Corp.
[{"type":"text","content":"\n\n\n\nMagellan Gold Signs Memorandum of Understanding to Acquire Operating Mill in Mexico\n\n\n\n\n\nMagellan Gold Signs Memorandum of Understanding to Acquire Operating Mill in Mexico\nPR Newswire\nRENO, Nevada, March 6, 2017\n\n\n\nRENO, Nevada, March 6, 2017 /PRNewswire/ --\n\nMagellan Gold Corporation (OTCQB: MAGE) (\"Magellan\" or \"the Company\") today announced that it has entered into a Memorandum of Understanding (\"MOU\") with Rose Petroleum plc (AIM: ROSE) (\"Rose\"), a multi-asset natural resource business, to purchase an operating floatation plant that also includes a precious metals leach circuit 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's normal operation is based on sales of floatation concentrates to smelters, and payment for precious metals content. The mill has operated for ten years and currently is engaged in toll milling for third party ore producers.\n\n\"This exciting acquisition will transform Magellan into a production company, which we believe will attract significant attention in today's junior mining market,\" said Pierce Carson, CEO. \"Our strategy, following the acquisition, will be to build production through expansion of our own resources within the regional gold belt where the mill is located.\"\n\nUnder the terms of the MOU, the Company has been granted a 90-day option to purchase the SDA Mill, in consideration of a non-refundable $50,000 payment. The option period can be extended for an additional 60 days with another $100,000 payment. The extension payment will be credited against the purchase price, if the transaction closes. The purchase price for the SDA Mill is $1.5 million, 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 \n\nMagellan Gold Corporation (OTCQB: MAGE) is ...