TORONTO, Aug. 9, 2021 /CNW/ - Magna Gold Corp. (TSXV: MGR)
(OTCQB: MGLQF) ("Magna" or the "Company") is pleased to provide an
update to its previously announced non-brokered private placement
of C$10,000,000 convertible
debentures (the "Debentures") with Delbrook Capital Advisors Inc.
("Delbrook"). The principal amount of the Debentures is
convertible, at the election of Delbrook, into common shares of the
Company at a conversion price of C$1.25 per common share. The interest on
the Debentures is convertible, at the election of Delbrook and
subject to the approval of the TSX Venture Exchange, into either
cash or common shares of the Company based on the closing price on
the day prior to the issuance of a press release relating to the
applicable interest payment date and will be paid in full,
including in the event of early conversion. The Company will pay
Delbrook a 1.25% arrangement fee on closing of the private
placement. The private placement is subject to the approval
of the TSX Venture Exchange.
The Debentures mature in 24 months from the closing date. The
Debentures will initially be unsecured obligations of the Company
and will bear interest at a rate of 8.5% per annum until the date,
on or before September 30, 2021 (or
such later date as may be agreed by the Company and Delbrook), that
the security contemplated by the Debentures is delivered to
Delbrook. Following such delivery, if applicable, the Debentures
will bear interest at a rate of 6.5% per annum. The completion of
the private placement is subject to TSX Venture Exchange approval
and is expected to be completed on or about August 19, 2021.
About Magna Gold Corp
Magna is a Mexico focused gold/silver production company
focused on acquiring, exploring, developing and operating quality
precious metals properties in Mexico. It is committed to advancing its 100%
owned flagship San Francisco Mine and other highly prospective
mineral properties located in Sonora and in Chihuahua. 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. Magna employs community members and services in its
operations.
ON BEHALF OF THE BOARD OF DIRECTORS
Arturo Bonillas
President and CEO
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 "plans". 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,
exploration results, potential mineralization (including estimates
of measured and indicated resources, inferred resources and
probable reserves), exploration and mine development plans,
production (including gold production expectations and guidance and
expectations of becoming a mid-tier producer), processing and
mining expectations (including statements regarding expansion and
advancement of assets) and strip ratio trends and expectations .
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.