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Magellan Gold Closes Acquisition of SDA Mill in Mexico
Wednesday 06 December 2017

6 December 2017 - US-based precious metals explorer Magellan Gold Corp. (OTCQB: MAGE) has closed its purchase of the SDA Mill, Nayarit State, Mexico, from Rose Petroleum plc (AIM: ROSE), the company said.

The SDA Mill is a fully permitted and operational mineral processing plant and includes all associated assets, licenses and agreements.

Total consideration for the SDA Mill purchase is USD 1.5m, consisting of USD 1m in cash and USD 500,000 in Magellan stock, of which USD 100,000 in cash already has been paid.

As announced August 16, 2017, Magellan has arranged USD 900,000 in irrevocable bridge loans in support of its option to purchase the mill. The bridge loans are sufficient to complete the cash component of the purchase price.

The SDA Mill is a fully operational flotation plant that also includes a precious metals leach circuit and associated assets, licenses and agreements.

The mill has the capacity to process ore at a rate of up to 200 tons per day. The mill has a ten-year operating history.

Historically its operation has been based on sales of flotation concentrates to smelters, and payment for precious metals content.

Milling activity currently is on hold pending the completion of the purchase transaction.

Magellan Gold Corp. (OTCQB: MAGE) is a US public enterprise focused on the exploration and development of precious metals. The company has obtained an option to acquire the SDA flotation plant in the State of Nayarit, Mexico, and controls two precious metals exploration properties located in Arizona and in Peru.

The 100% owned Silver District Property in southwest Arizona comprises over 2,000 acres covering the heart of the historic Silver District.

This property contains a near-surface historical drilled resource of 16m ounces of silver and exhibits exploration promise for significant expansion.

The Niñobamba Silver-Gold Property in central Peru, on which the company has the right to earn a 50% interest, covers 9,027 acres and demonstrates potential for a large, bulk tonnage, silver-gold deposit.
Date Published: 06/12/2017
Target: Operating floatation plant in the,  State of Nayarit, Mexico
Country: Mexico
Deal Size: 1.5m (USD)
Sector: Metals/Mining
Type: Corporate acquisition
Financing: Cash and Stock
Status: Closed
Vendor: Rose Petroleum
Buyer: Magellan Gold