Magna Gold Corp. (MGR:TSX.V; MGLQF:OTCQB) announced in a news release "the payment of US$5,000,000 to Argonaut Gold Inc. (Argonaut) in relation to the acquisition of the San Francisco Mine."
The company stated that according to the final terms outlined in the amended San Francisco Mine buyout agreement dated April 24, 2020, and executed by the Mexican subsidiaries of Argonaut Gold and Magna Gold, it was required to pay US$5 million plus a working capital adjustment by May 6, 2021.
The firm reported it has now made the contracted US$5 million payment from working capital and has issued a promissory note in the amount of US$2,675,000 for the remaining balance owed. The company said that the promissory note bears a simple uncompounded interest rate of 5% per annum and is to be paid in four monthly installments beginning July 6, 2021.
Magna Gold's President and CEO Arturo Bonillas stated, "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."
The firm advised that the San Francisco gold mine is located in Sonora, Mexico, and that the company is also advancing other wholly owned highly prospective gold-silver properties within the Sonora and Chihuahua regions of Mexico.
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