Magna Gold Declares Acquisition of Mexican Gold Mine

SEATTLE (Scrap Monster): Mexico-based Magna Gold Corp. announced that it has entered into a definitive agreement with Timmins GoldCorp Mexico towards purchase of the San Francisco mine in Sonora, Mexico. The deal is expected to close by end-March this year, subject to the receipt of all regulatory approvals.

In accordance with the agreement, Magna Gold will issue 9.74 million common shares in the capital of the company, representing approximately one-fifth of the issued and outstanding common shares. In addition, $5 million in cash will be paid after a year from the finalization of the deal.

Arturo Bonillas, President and Chief Executive Officer of Magna noted that the acquisition of the Mexican mine is a pivotal moment in the company’s evolution to become a leading gold producer in Mexico. He expressed confidence in the company’s ability to re-establish the mine as a profitable one. The acquisition will help to generate value for its shareholders in the immediate and long-term, Bonillas added.

Further to closure of the acquisition, Magna will implement a mine operational improvement plan, which will be supported by either a preliminary economic assessment or feasibility study.