Magellan Gold Corporation (OTCQB: MAGE) (‘Magellan‘ or ‘the Company‘) is pleased to announce it has made a further US$100,000 option payment for a 60-day extension under its MOU with Rose Petroleum plc (AIM: ROSE). The MOU gives Magellan the right to purchase an operating floatation plant and associated assets, licenses and agreements (together, the ‘SDA Mill‘) located in the State of Nayarit, Mexico, for a total consideration of US$1.5 million. The mill has produced precious metals for ten years and its normal operation is based on sales of floatation concentrates to smelters. The Company paid an initial US$50,000 option payment and announced the MOU on March 6, 2017.
“The potential SDA Mill acquisition will transform Magellan into a production company, which we believe will create significant value for our stockholders”, said Pierce Carson, CEO. “Our strategy following the acquisition will be to expand production from resources within the regional gold belt where the mill is located.”
Under the terms of the MOU, the $100,000 non-refundable extension payment will be credited against the purchase price if the transaction closes. The $1.5 million purchase price for the SDA Mill is payable as to $1.0 million in cash and $500,000 in restricted common stock of Magellan.