TORONTO, March 27,
2023 /CNW/ - Magna Gold Corp. (NEX: MGR.H) (OTCPINK:
MGLQF) ("Magna Gold", and
together with its direct and indirect subsidiaries, "Magna"
or the "Company") announces that it was granted an
initial order (the "Initial Order") pursuant to the
Companies' Creditors Arrangement Act (the
"CCAA") by the Ontario Superior Court of Justice
(Commercial List) (the "Court") on application by
Magna Gold seeking court protection
from its creditors to allow it to restructure its business and
property as a going concern. The Initial Order, among other
things, (i) provides for a stay of all proceedings in favour of
Magna Gold, staying creditors from
enforcing their claims until April 4,
2023 (which date can be extended by further Order of the
Court); (ii) continues, under the CCAA, the proceedings
under the Bankruptcy and Insolvency Act, R.S.C. 1985, c.
B-3, as amended (the "BIA"), commenced by Magna Gold pursuant to a Notice of Intention to
Make a Proposal (the "NOI") filed on March 3, 2023; (iii) authorizes the decision by
Magna Gold to incur no further
expenses in relation to any filings and disclosures that may be
required by any federal, provincial or other laws respecting
securities or capital markets in Canada or the United
States; and (iv) relieves Magna
Gold of any obligation to call and hold its annual general
meeting of shareholders until further Order of the Court.
Pursuant to the Initial Order, KSV Restructuring Inc. was
appointed as monitor in the CCAA proceedings and will assist
Magna Gold with, among other things,
(i) continuing to operate its business in the ordinary course, (ii)
monitoring and updating the Court on the progress of the
proceedings relating to the application for restructuring and
provisional creditor protection by Molimentales del Noroeste, S.A.
de C.V ("Molimentales"), Magna
Gold's indirect subsidiary, before the Second District Court
for Insolvency Matters located in Mexico
City, Mexico, (iii) developing a forward-looking business
plan for the benefit of Magna Gold's
creditors and other stakeholders, and (iv) evaluating the
viability of presenting a plan of compromise or arrangement to
Magna Gold's creditors within the
proposed CCAA proceedings, all under the supervision of the
Court. Importantly, management of Magna
Gold remains responsible for the day-to-day operations.
As a result of the foregoing, the TSX Venture Exchange (the
"TSXV") has advised Magna
Gold that the trading of Magna
Gold's common shares (the "Common Shares") on the NEX
Board of the TSXV has been suspended. Effective March 8, 2023, the Common Shares were transferred
to the NEX in connection with Magna
Gold filing the NOI under the BIA as described in
Magna Gold's news release dated
March 3, 2023.
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
For further information, please visit the Company's SEDAR
profile at www.sedar.com or the Company's corporate website at
www.magnagoldcorp.com or contact us at telephone +52 (662) 310
0326, email info@magnagoldcorp.com.
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, the intention to restructure the
affairs of Magna Gold and
Molimentales, the Company's objectives, goals or future plans,
exploration results, shareholder value expectations, exploration
and mine development plans (including mine plan optimization and
value creating initiatives involving non-core assets), production
(including gold production expectations and guidance), processing
and mining expectations (including statements regarding reduction
and resumption of mining operations), cost and cash flow
expectations, and payables reduction. Factors that could cause
actual results to differ materially from such forward-looking
information include, but are not limited to, the inability of
Magna Gold and/or Molimentales to
restructure their affairs, 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.
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SOURCE Magna Gold Corp.