Purchase of SDA Mill Expected to Close in November. Milling Operations Restarted and Underway.
November 08 2017 - 8:00AM
InvestorsHub NewsWire
Purchase of SDA Mill Expected to Close
in November
Milling Operations Restarted and
Underway
Reno, NV -- November 8, 2017 -- InvestorsHub NewsWire
-- Magellan Gold Corporation (OTCQB:
MAGE) ("Magellan" or "the Company") is pleased to announce that
its purchase of the SDA Mill, Nayarit State, Mexico, from Rose
Petroleum plc (AIM:
ROSE) is nearing conclusion. The final major item for closing
to occur, restructuring of Mexican ownership of the SDA Mill, is in
progress and is expected to be concluded in November 2017. Other
important closing items already in place include the necessary
funding and Rose's shareholder approval.
Magellan is especially pleased to announce that effective for
the month of November 2017, operations of the SDA Mill have
re-commenced under an interim milling agreement between the Company
and Rose and its Mexican operating subsidiary. The processing plant
currently is treating third-party ore on a toll basis at the rate
of 100 tons per day. Magellan has funded costs of the interim
operations under an approved budget and will be entitled to
proceeds therefrom.
"Acquisition of the SDA Mill will transform Magellan into a
production company and will be an exciting development for our
shareholders," stated CEO Pierce Carson. "With production started
already under the interim processing agreement, we have begun to
execute on our strategy to resume processing operations, build
production and increase cash flow."
Total consideration for the purchase of the SDA Mill is US$1.5
million, consisting of $1.0 million in cash and $500,000 in
Magellan stock, of which $100,000 in cash already has been paid. As
announced August 16, 2017, Magellan has arranged $900,000 in
irrevocable bridge loans in support of the mill purchase. The
bridge loans are sufficient to complete the cash component of the
purchase price.
Although the parties anticipate closing to occur in November
2017, there can be no assurance that the purchase of the mill will
be concluded.
The SDA Mill is a fully operational flotation plant that also
includes a precious metals leach circuit and associated assets,
licenses and agreements. The mill has the capacity to process ore
at a rate of up to 200 tons per day. The mill has a ten-year
operating history. Historically its operation has been based on
sales of flotation concentrates to smelters, and payment for
precious metals content. Until November 2017, milling activity was
on hold pending the completion of the purchase transaction.
About Magellan Gold Corporation
Magellan Gold Corporation (OTCQB:
MAGE) is a US public enterprise focused on the exploration and
development of precious metals. The Company has obtained an option
to acquire the SDA flotation plant in the State of Nayarit, Mexico,
and controls two precious metals exploration properties located in
Arizona and in Peru.
The 100% owned Silver District Property in southwest Arizona
comprises over 2,000 acres covering the heart of the historic
Silver District. The property contains a near-surface historical
drilled resource of 16 million ounces of silver and exhibits
exploration promise for significant expansion. The Niobamba
Silver-Gold Property in central Peru, on which the Company has the
right to earn a 50% interest, covers 9,027 acres and demonstrates
potential for a large, bulk tonnage, silver-gold deposit.
To learn more about Magellan Gold Corporation, visit www.magellangoldcorp.com.
Cautionary Statement
The United States Securities and Exchange Commission permits
mining companies, in their filings with the SEC, to disclose only
those mineral deposits that a company can legally extract or
produce. Under SEC Industry Guide 7 standards, a "final" or
"bankable" feasibility study is required to report reserves.
Currently we have not delineated "reserves" on any of our
properties. We cannot be certain that any deposits at our
properties will ever be confirmed or converted into SEC Industry
Guide 7 compliant "reserves." Investors are cautioned not to assume
that all or any part of any "resource" estimates will ever be
confirmed or converted into reserves or that they can be
economically or legally extracted.
Forward Looking Statements
This release contains "forward-looking statements." Such
statements are based on good faith assumptions that Magellan Gold
Corporation believes are reasonable but which are subject to a wide
range of uncertainties and business risks that could cause actual
results to differ materially from future results expressed,
projected or implied by such forward-looking statements. Factors
that could cause actual results to differ from those anticipated
are discussed in Magellan Gold Corporation's periodic filings with
the Securities and Exchange Commission.
Contacts:
Magellan Gold Corporation
Pierce Carson: (505) 463-9223
John Power: (707) 884-3766
Peter Nesveda (INT IR): +61 4 1235 7375
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