VANCOUVER, BC, Nov. 10, 2020 /CNW/ – Sable Resources Ltd. (“Sable” or the “Company”) (TSXV:SAE) (OTCQB:SBLRF) is pleased to announce the Company and Exploraciones Sable, S. de R.L. de C.V. (the “Vendor”), a wholly-owned subsidiary of the Company, have entered into an Option Acquisition Agreement with Magna Gold Corp. (“Magna”) and Molimentales del Noroeste, S.A. de C.V. (the “Purchaser”), a subsidiary of Magna, for the sale of the option agreement on the Margarita Silver Project, located in Chihuahua State, Mexico (the “Margarita Option Acquisition Agreement”). In exchange for acquiring the option rights to the Margarita Silver Project, the Purchaser has agreed to pay the Vendor $1,500,000 in cash and to issue 3,219,278 Magna shares equal in value to $3,500,000, calculated based on the volume weighted average price of Magna shares on the TSX Venture Exchange for the fifteen trading days prior to the date of the Margarita Option Acquisition Agreement. The Purchaser will also pay $2,300,000 to the title owners of the Margarita Silver Project, comprised of $500,000 in cash and $1,800,000 in Magna shares, calculated on the same basis as the share consideration the Company is receiving. Closing of the sale transaction is expected to occur on or about November 16, 2020 and is subject to, among other
things, the approval of the TSX Venture Exchange and any other approvals required under applicable laws.