(Magna Gold, 7.May.2021) — Magna Gold Corp. (TSXV: MGR) (OTCQB: MGLQF) announced payment of $5mn to Argonaut Gold Inc. in relation to the acquisition of the San Francisco Mine.
Pursuant to a definitive share purchase agreement dated 5 March 2020, as amended 24 April 2020, between Mexican subsidiaries of Argonaut and Magna for the acquisition of the San Francisco Mine, Magna was required to pay $5mn plus a working capital differential by 6 May 2021. Magna has completed the $5mn payment from working capital and provided a promissory note for the remaining balance of $2.7mn to be paid in four monthly installments commencing 6 July 2021 and ending 6 October 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.”