Business
Xali Gold Announces Modification to Deal Terms for SDA Plant in Mexico
VANCOUVER, British Columbia, April 25, 2024 (GLOBE NEWSWIRE) -- Xali Gold Corp. (TSXV:XGC) ("Xali Gold” or the “Company”) is pleased to announce that it has gra
About this update from Xali Gold Corp.
[{"type":"text","content":" VANCOUVER, British Columbia, April 25, 2024 (GLOBE NEWSWIRE) -- Xali Gold Corp. (TSXV:XGC) (\"Xali Gold” or the “Company”) is pleased to announce that it has granted a temporary modification to the deal terms with Mexican company, Grupo Minero WIYA (“WIYA”) regarding the San Dieguito de Arriba (“SDA”) Plant in Nayarit, Western Mexico. While the original Rent to Purchase Agreement as per the Xali Gold News Release dated December 18, 2023 remains in place, WIYA and the Company have agreed to a three month modification of terms so that WIYA has time to better develop their mining operations. “We are pleased that WIYA was able to put our SDA Plant into operation and demonstrate that it functions well,” says Joanne Freeze, President and CEO of Xali Gold. “We remain encouraged that our business relationship with WIYA could develop into a long-term mutually beneficial partnership for developing various small mines in Nayarit using our exploration skills and their financial strength.” Operation of the plant was temporarily put on hold in March 2024 as WIYA was unable to supply sufficient mineralized material to the plant to sell concentrates, receive a steady income and make payments to the Company. Terms of the Temporary Modification to Rent to Purchase Agreement WIYA Agrees to: Pay US$45,000 to Xali Gold within 15 days from the plant restarting, which will be credited against the final payment due as part of the Rent to Purchase agreement dated December 8, 2023. Pay Xali Gold US$30.00/ton for each ton processed with bi-weekly minimum payments of US$30,000. Processing is expected to be between 2,700 and 3,000 tons per month and monthly adjustments of the overall tonnage processed will also be paid. For example, if 3,000 tons are processed during one month, then payments to Xali Gold would total US$90,000. Maintain a minimum of 1,500 tons of mineral at the plant with a guaranteed value, based on metallurgical tests, to initially operate for at least 15 days with reasonable profits. The rest of the general terms of the December 8, 2023 Rent to Purchase Agreement between WIYA and Xali Gold not temporarily modified in this 3 month agreement, remain in force. The profits from the partnership will be shared equally with Magellan Acquisitions Corp. (“Magellan”), as the Company and Magellan each own 50% of the SDA plant, as per th...