Business
Xali Gold Increases Ownership in SDA Plant and Provides Update on El Oro Tailings Project
VANCOUVER, British Columbia, Nov. 01, 2022 (GLOBE NEWSWIRE) -- Xali Gold Corp. (TSXV:XGC) ("Xali Gold” or the “Company”) is pleased to announce that it has incr
About this update from Xali Gold Corp.
[{"type":"text","content":" VANCOUVER, British Columbia, Nov. 01, 2022 (GLOBE NEWSWIRE) -- Xali Gold Corp. (TSXV:XGC) (\"Xali Gold” or the “Company”) is pleased to announce that it has increased its ownership in the SDA Plant in Western Mexico to 50% by issuing shares to Magellan Acquisition Corp. (“Magellan”). In addition, the Company has started to receive advance Net Profits Interest (“NPI”) payments from Sun River Gold (“SRG”) for the El Oro Tailings Project in Mexico. San Dieguito de Arriba (“SDA”) Plant Xali Gold has increased its interest in the SDA plant from 30% to 50% by issuing 4,125,758 shares at a price of $0.066 to Magellan. The Company has received interest from third parties desiring to enter into joint ventures in Xali Gold’s Western Mexico assets, the SDA plant and near-surface high grade mineralization near the plant. Two local Mexican mining groups are offering to provide both investment and expertise to get the SDA Plant’s operating permits updated and the plant fully operational as well as to develop and explore nearby mining properties. Terms under discussion include the provision of capital and expertise for the operation of the plant and the provision of high-grade mineralization, while Xali Gold would provide expertise to explore for additional gold and silver resources and/or standalone mineral discoveries. The agreements under discussion are to include profit sharing. El Oro Tailings Project SRG has started making advance NPI payments of US$15,000 per month to Xali Gold as part of the second extension agreement on the El Oro Tailings Project, in El Oro Mexico. On January 6, 2022, Xali Gold announced that the Company had agreed that if commercial production was not achieved by May 1, 2022, Xali would grant Sun River a second extension on the Option until December 31, 2022, under the following terms: 1) Advanced NPI payments of US$15,000 per month until commercial production is reached (or first concentrate is produced or dore gold is poured). The Company has received such payments for September and October such that a total of US$30,000 in has been received as advance NPI payments. An additional US$13,400 was paid during July and August 2022 against shared expenses. The payments due from May 1st through August, 2022 are still outstanding and the Company has hired a new permitting consultant to assist with the permitt...