TORONTO,
March 18, 2022 /CNW/ -
Magna Gold Corp. (TSXV: MGR) (OTCQB: MGLQF) ("Magna" or the
"Company"), announces that, further to its news release dated
June 30, 2020, its subsidiary
Molimentales del Noroeste S.A. de C.V. ("Molimentales") has entered
into an amending agreement with PEAL de Mexico S.A. de C.V.
("PEAL"). In conjunction with the acquisition of the
San Francisco mine on May 6, 2020, the Company successfully negotiated
a settlement agreement with PEAL which settled amounts owing from
contract mining activities owed by the predecessor owners of the
San Francisco mine (the
"Settlement Agreement").
On February 22, 2022, the Company
amended the Settlement Agreement to settle outstanding amounts
owing in exchange for the issuance of common shares of the Company
with a value of US$1,000,000, which
reduced the Company's amount owing by US$1,000,000 from US$4,054,351 to US$3,054,351. The issuance of the
shares remains subject to the approval of the TSXV. Any
shares issued will be subject to a hold period expiring four months
and a day following issuance.
President and CEO Arturo Bonillas
stated: "Since the Company's inception, PEAL has been a strategic
stakeholder and like all of our shareholders, a valued
partner. Their request to amend the terms is a testament to
their ongoing commitment and validation of our strategic focus in
Mexico."
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, statements with respect to (i) the
Company's objectives, goals or future expectations (including, with
respect to the use of the proceeds of the New Loan), (ii) the
approval by the Exchange of the Bonus Warrants, and the issuance
thereof, (iii) completion of the transactions contemplated herein
(including, the approval of the Exchange of the said transactions),
and (iv) the anticipated future payment obligations of the Company
and/or its subsidiaries pursuant to the terms of the Note, as
amended. These forward-looking statements are based on current
expectations, and are naturally subject to uncertainty and changes
in circumstances that may cause actual results to differ
materially. 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.