RENO, Nev., Sept. 29, 2017 /PRNewswire/ -- 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 on tract to close by the end of October 2017. The SDA Mill is a fully permitted
and operational mineral processing plant and includes all
associated assets, licenses and agreements. Major milestones
towards closing were achieved on September
11, 2017, when Magellan and Rose announced the execution of
a definitive purchase agreement, and on September 18, 2017, when Rose obtained its
shareholder approval required for the sale. The final major item,
restructuring of Mexican ownership of the SDA Mill, is in process
and is expected to be concluded in October
2017.
"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. "Our strategy following the acquisition will be to
resume processing operations, build production and increase cash
flow."
Total consideration for the SDA Mill purchase 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 its option to purchase the mill. The
bridge loans are sufficient to complete the cash component of the
purchase price.
Although the parties anticipate closing to occur in October 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. Milling activity currently is 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 Niñobamba 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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SOURCE Magellan Gold Corporation