TORONTO, Feb. 16,
2023 /CNW/ - Magna Gold Corp. (TSXV: MGR) (OTCPINK:
MGLQF) ("Magna" or the "Company"), announces that its subsidiary,
Molimentales del Noroeste S.A. de C.V. ("Molimentales") has
received the following Notices of Claims from three of its
creditors in Mexico:
- Claim by Cominvi Servicios, S.A. de C.V. filed in the
12th District Court seated at Hermosillo, Sonora, Mexico, claiming the
amount of $US 5,085,972.35.
- Claim by Covoro Mining Solutions Mexicana, S. de R.L. de C.V.
filed in the 33rd Oral Process Court of Mexico City, Mexico, claiming the amount of
$US 1,275,563.59.
- Claim by Sidney W. French, S.A.
de C.V., filed in the Second Court in Civil Matters of Gómez
Palacio City, Durango, Mexico,
claiming the amount of $US
129,702.38.
Molimentales has also been notified of the commencement of an
arbitration process with Peal México, S.A. de C.V. ("Peal"), with
arbiters to be appointed by the parties and a court, pursuant to
which Peal is claiming $US
13,204,086.70 in outstanding indebtedness.
Molimentales is the owner and operator of the Company's San
Francisco Mine. The arbitration and three civil claims
relate to the recovery of past due amounts. The Company is
assessing the potential impact of the arbitration and the claims
and will report further in due course.
About Magna Gold Corp.
Magna is a Mexico focused gold
and silver production company engaged in acquiring, exploring,
developing and operating quality precious metals properties in
Mexico. It is committed to
advancing its 100% owned flagship San Francisco Mine, its Margarita
Silver Project and other highly prospective mineral properties
located in Sonora and in
Chihuahua. The primary strength of the Company is the team of
highly experienced mining professionals with a proven track record
of developing properties in Mexico
from discovery to production. Magna employs community members and
services in its operations.
ON BEHALF OF THE BOARD OF DIRECTORS
Arturo Bonillas
President and CEO
Neither the TSX Venture Exchange nor its Regulation Services
Provider (as that term is defined in policies of the TSX Venture
Exchange) accepts responsibility for the adequacy or accuracy of
this release.
Cautionary
Statements
This News Release includes certain "forward-looking
statements" which are not comprised of historical facts.
Forward-looking statements include estimates and statements that
describe the Company's future plans, objectives or goals, including
words to the effect that the Company or management expects a stated
condition or result to occur. Forward-looking statements may be
identified by such terms as "believes", "anticipates", "expects",
"estimates", "may", "could", "would", "will", or "plans". Since
forward-looking statements are based on assumptions and address
future events and conditions, by their very nature they involve
inherent risks and uncertainties. Although these statements are
based on information currently available to the Company, the
Company provides no assurance that actual results will meet
management's expectations. Risks, uncertainties and other factors
involved with forward-looking information could cause actual
events, results, performance, prospects and opportunities to differ
materially from those expressed or implied by such forward-looking
information. Forward-looking information in this news release
includes, but is not limited to, any potential impact of the civil
claims and arbitration on shareholder value expectations,
exploration and mine development plans, production (including gold
production expectations and guidance), processing and mining, cost
and cash flow expectations, as well as the outcomes of the
litigation and arbitration. Factors that could cause actual results
to differ materially from such forward-looking information include,
but are not limited to failure to identify mineral resources,
failure to convert estimated mineral resources to reserves, the
inability to complete a feasibility study which recommends a
production decision, the preliminary nature of metallurgical test
results, delays in obtaining or failures to obtain required
governmental, environmental or other project approvals, political
risks, uncertainties relating to the availability and costs of
financing needed in the future, changes in equity markets,
inflation, changes in exchange rates, fluctuations in commodity
prices, delays in the development of projects, capital, operating
and reclamation costs varying significantly from estimates and the
other risks involved in the mineral exploration and development
industry, risks related to the effects of COVID-19 on
the Company; and those risks set out in the Company's public
documents filed on SEDAR. Although the Company believes that the
assumptions and factors used in preparing the forward-looking
information in this news release are reasonable, undue reliance
should not be placed on such information, which only applies as of
the date of this news release, and no assurance can be given that
such events will occur in the disclosed time frames or at all. The
Company disclaims any intention or obligation to update or revise
any forward-looking information, whether as a result of new
information, future events or otherwise, other than as required by
law.
SOURCE Magna Gold Corp.