TORONTO, May 7, 2021 /CNW/ - Magna Gold Corp. (TSXV: MGR)
(OTCQB: MGLQF) ("Magna" or the "Company") is pleased to announce
the payment of US$5,000,000 to
Argonaut Gold Inc. ("Argonaut") in relation to the acquisition of
the San Francisco Mine.
Pursuant to a definitive share purchase agreement dated
March 5, 2020, as amended
April 24, 2020, between Mexican
subsidiaries of Argonaut and Magna for the acquisition of the San
Francisco Mine, Magna was required to pay US$5,000,000 plus a working capital differential
by May 6, 2021. Magna has completed
the US$5,000,000 payment from working
capital and provided a promissory note for the remaining balance of
US$2,675,000 to be paid in four
monthly installments commencing July 6,
2021 and ending October 6,
2021. The promissory note bears uncompounded interest at a
rate of 5% per annum.
Magna President and CEO
Arturo Bonillas commented: "We are
very pleased to be fulfilling our obligations to Argonaut.
With this payment behind us we are looking forward to reaching a
steady rate of production at the San Francisco Mine and
strengthening our balance sheet primarily through the cash flow
generated by the operations."
About Magna Gold Corp
Magna is a mineral exploration company focused on acquiring,
exploring, developing and operating quality precious metals
properties in Mexico. The primary
strength of the Company is the team of highly experienced mining
professionals with a proven track record of developing properties
in Mexico from discovery to
production on budget and on time.
Magna is a Mexico focused
gold/silver exploration company that is committed to advancing its
100% owned highly prospective mineral properties located in
Sonora and in Chihuahua. The
Company's shares trade on the TSXV under the trading symbol "MGR"
and OTCQB under the trading symbol "MGLQF". Magna employs community
members and services in its operations.
ON BEHALF OF THE BOARD OF DIRECTORS
Arturo Bonillas
President and CEO
THIS PRESS RELEASE DOES NOT CONSTITUTE AN OFFER TO SELL OR THE
SOLICITATION OF AN OFFER TO BUY ANY SECURITIES IN ANY JURISDICTION,
NOR SHALL THERE BE ANY OFFER, SALE, OR SOLICITATION OF SECURITIES
IN ANY STATE IN THE UNITED STATES
IN WHICH SUCH OFFER, SALE, OR SOLICITATION WOULD BE UNLAWFUL.
Neither the TSX Venture Exchange nor its Regulation Services
Provider (as that term is defined in policies of the TSX Venture
Exchange) accepts responsibility for the adequacy or accuracy of
this release.
Cautionary Statements
This News Release includes certain "forward-looking
statements" which are not comprised of historical facts.
Forward-looking statements include estimates and statements that
describe the Company's future plans, objectives or goals, including
words to the effect that the Company or management expects a stated
condition or result to occur. Forward-looking statements may be
identified by such terms as "believes", "anticipates", "expects",
"estimates", "may", "could", "would", "will", or "plan". Since
forward-looking statements are based on assumptions and address
future events and conditions, by their very nature they involve
inherent risks and uncertainties. Although these statements are
based on information currently available to the Company, the
Company provides no assurance that actual results will meet
management's expectations. Risks, uncertainties and other factors
involved with forward-looking information could cause actual
events, results, performance, prospects and opportunities to differ
materially from those expressed or implied by such forward-looking
information. Forward-looking information in this news release
includes, but is not limited to, the Company's objectives, goals or
future plans, statements, exploration results, potential
mineralization, exploration and mine development plans, production
(including the timing of the commencement of commercial
production), processing and mining expectations, cash flow
generation and balance sheet projections. Factors that could cause
actual results to differ materially from such forward-looking
information include, but are not limited to failure to identify
mineral resources, failure to convert estimated mineral resources
to reserves, the inability to complete a feasibility study which
recommends a production decision, the preliminary nature of
metallurgical test results, delays in obtaining or failures to
obtain required governmental, environmental or other project
approvals, political risks, uncertainties relating to the
availability and costs of financing needed in the future, changes
in equity markets, inflation, changes in exchange rates,
fluctuations in commodity prices, delays in the development of
projects, capital, operating and reclamation costs varying
significantly from estimates and the other risks involved in the
mineral exploration and development industry, risks
related to the effects of COVID-19 on the Company; and those
risks set out in the Company's public documents filed on SEDAR.
Although the Company believes that the assumptions
and factors used in preparing the forward-looking
information in this news release are reasonable, undue reliance
should not be placed on such information, which only applies as of
the date of this news release, and no assurance can be given that
such events will occur in the disclosed time frames or at all. The
Company disclaims any intention or obligation to update or revise
any forward-looking information, whether as a result of new
information, future events or otherwise, other than as required by
law.
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SOURCE Magna Gold Corp.