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Tarachi Gold Signs Purchase Agreement for the Magistral Mill and Tailings Project in Durango, Mexico
VANCOUVER, BC, Feb. 8, 2021 /CNW/ - Tarachi Gold Corp. (CSE: TRG) (PINK: TRGGF) (Frankfurt: 4RZ) ("Tarachi" or the "Company") is pleased to announce that it has
About this update from Tarachi Gold Corp.
[{"type":"text","content":" VANCOUVER, BC, Feb. 8, 2021 /CNW/ - Tarachi Gold Corp. (CSE: TRG) (PINK: TRGGF) (Frankfurt: 4RZ) (\"Tarachi\" or the \"Company\") is pleased to announce that it has signed the final purchase agreement with Manto Resources S.A. de C.V. (\"Manto\") to acquire the Magistral del Oro mill and tailings project (\"Magistral\" or the \"Project\"). The mill and high-grade gold tailings, located in the State of Durango, provide the Company with a near-term pathway to gold production and the Project is expected to start generating positive cashflow in 2022. Cameron Tymstra, CEO of Tarachi, commented: \"The Company is incredibly fortunate to have secured such a desirable and game-changing asset. During our recent site visit, the whole team was impressed with the like-new condition of the plant and the proximity of the tailings materials which are right at the doorstep. While the due diligence process took longer than expected, primarily due to COVID-19 related delays, we are now ready to roll up our sleeves and get to work to bring this facility online and start producing gold.\" Details of the Magistral Project 1,000 TPD Merrill-Crowe tailings reprocessing plant and tailings disposal facility. Access to an estimated 1.3 million tonnes of tailings material with a historic average grade of between 2.06 and 2.11g/t Au (Unpublished 2018 PEA). A qualified person has not done sufficient work to classify the historical estimate as a current mineral resource. The Magistral Project is accessible by paved highway, 175km from Parral, Chihuahua and approximately 5km north of the town of Santa Maria del Oro (pop. 5,000). Acquisition Terms Final terms of the Purchase Agreement are in line with the original Letter of Intent dated October 9, 2020, with Manto: Consideration for the Acquisition will consist of issuing 4,000,000 common shares of Tarachi (\"Common Shares\") to Manto. The Company will grant Manto a 15% net profits royalty on the estimated 1.3 million tonnes of tailings material expected to be processed and reimburse Manto for US$1,179,500 of cash outlays. The Company will satisfy certain obligations of Manto by paying a total of approximately US$1,111,000 plus any Mexican value added tax (IVA) and issuing 1,685,916 Common Shares within 90 days of closing. Manto will be entitled to the following staged bonus payments: An additional 4,000,...