VANCOUVER, Oct. 13, 2017 /CNW/ - MX Gold Corp.
(TSX-V: MXL) (FSE: ODV) (OTCQX: MXLGF) (the "Company" or
"MX Gold") is pleased to announce that the Company has
entered into a letter of intent (the "Agreement") to acquire
all of the shares of Symple Internet Financial Ltd.
("Symple"), an arm's length private British Columbia cryptocurrency/blockchain
mining company based in Manitoba. The proposed acquisition is
the Company's first foray outside the mineral exploration space and
is intended to be a pilot project to determine whether further
investment in the growing cryptocurrency industry is
warranted. The Company has had preliminary discussions about
the proposed transaction with the TSX Venture Exchange (the
"Exchange") and anticipates that it will proceed as a
Reviewable Transaction but not a Change of Business in accordance
with Exchange policies.
Pursuant to the terms of the Agreement, the Company has agreed
to pay $150,000 and issue 4.5 million
shares to the shareholder of Symple in consideration for all of the
shares thereof. The closing of the transaction is subject to
customary conditions precedent, including approval by the Exchange
and the entry into a consulting agreement with the principal
shareholder and executive of Symple for a minimum term of 12 months
for compensation of $8,000 per
month. The Agreement contemplates that a definitive agreement
will be entered into on or before November
1, 2017 and closing will occur on or before December 1, 2017.
Symple operates a cryptocurrency/blockchain mining operation in
a 5,000 sq. ft. leased facility in Manitoba with the possibility to expand in the
future under current leases. Symple has been successfully operating
in the cryptocurrency business for approximately 1 year.
Dan Omeniuk, CEO of the Company
stated, "The blockchain space is growing and has the power to
change the way finances are conducted globally. We are
excited to have the opportunity to work with Albert Buu, the founder of Symple, who has a
vast knowledge in the blockchain space and his educational
background in computer engineering."
In other corporate news, the Company confirms that it has
received final Exchange approval for the $4
million equity financing that closed on September 9, 2017, as further disclosed in its
news release of even date.
About MX Gold
MX Gold is a junior mining company focused on the exploration
and development of advanced projects located in Mexico and British
Columbia, Canada. The company's primary focus, is the
Magistral del Oro tailings project
located 392 km SW of Chihuahua and includes a 500
tonnes-per-day dynamic cyanide countercurrent system plant
constructed in 2013, which the Company plans to expand to 1,000
tonnes-per day. The Company also owns 50% of the IDS
Project, which includes a smelter that was completed in 2014
for a throughput capacity of 50 tonnes per day. The smelter was
built to receive and process material from small-scale miners
across the state of Durango and beyond. MX Gold has acquired a
substantial land package of approximately 22,881 acres in the heart
of the Golden Triangle. The Company's primary focus in
British Columbia is its Willa gold
and copper project located 12 kilometers south of Silverton, B.C. In 2015, MX Gold Corp.
completed the accretive acquisition of the Willa project and the
Max Molybdenum Mine and Mill Complex. The Willa mine is located 135
kilometers south of the Max Mill. MX Gold Corp. can also elect to
reopen the Max Molybdenum mining operation once world Moly prices
improve. For updates on the Company's projects please visit our
website. www.mxgoldcorp.com
On behalf of the Board of Directors,
"Akash Patel"
Akash Patel, Vice President and
Director, MX Gold Corp.
Neither the TSX Venture Exchange Inc. nor its Regulation
Service Provider (as that term is defined in the policies of the
TSX Venture Exchange Inc.) accepts responsibility for the adequacy
or accuracy of this press release.
Statements in this news release that are not historical facts
are forward-looking statements. Forward-looking statements
are statements that are not historical, and consist primarily of
projections - statements regarding future plans, expectations and
developments. Words such as "expects", "intends", "plans",
"may", "could", "potential", "should", "anticipates", "likely",
"believes" and words of similar import tend to identify
forward-looking statements. Forward-looking statements in
this news release include the anticipation of entering into and
closing a definitive agreement with respect to the acquisition of
Symple and the possibility of expanding the number of units
operated by such company. All of these forward-looking
statements are subject to a variety of known and unknown risks,
uncertainties and other factors that could cause actual events or
results to differ from those expressed or implied, including,
without limitation: the Company's ability to enter into and close
the definitive agreement and acquire Symple; the ability to obtain
Exchange approval with respect to the transactions; MX Gold's
ability to attract and retain qualified personnel and management,
including the proposed consulting agreement with Mr. Buu; and the
ability of the Company to fund its operations, as well as other
risks and uncertainties identified under the heading "Risk Factors"
in the Company's continuous disclosure documents filed on
SEDAR. You are cautioned that the foregoing list is not
exhaustive of all factors and assumptions which may have been
used. MX Gold cannot assure you that actual events,
performance or results will be consistent with these
forward-looking statements, and management's assumptions may prove
to be incorrect. These forward-looking statements reflect current
expectations regarding future events and operating performance and
speak only as of the date hereof and MX Gold does not assume any
obligation to update forward-looking statements if circumstances or
management's beliefs, expectations or opinions should change other
than as required by applicable law. For the reasons set forth
above, you should not place undue reliance on forward-looking
statements.
SOURCE MX Gold Corp.