Magellan Gold Corporation (OTCQB: MAGE) (“Magellan” or “the Company”) is pleased to announce that Magellan and Rose Petroleum plc (AIM: ROSE) have signed a definitive and binding stock purchase agreement (“SPA”) in respect of Magellan’s acquisiiton of Rose’s mineral processing mill operation in San Dieguito de Arriba, Nayarit State, Mexico and its associated assets, licenses and agreements (together, the “SDA Mill”). The purchase of the mill is expected to close in October 2017.
“Signing of the SPA is a major milestone towards completion of the closing items,” said CEO Pierce Carson. “The other major items are well in hand and include Rose’s shareholder approval, which is expected to occur at a General Meeting of Shareholders convened on September 18, 2017, and restructuring of Mexican ownership of the SDA Mill, which is in process and anticipated 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,” continued Carson. “Our strategy following the acquisition will be to resume processing operations, build production and increase cash flow.”