Magellan Gold Corp has completed the purchase of the SDA Mill, Nayarit State, Mexico, from Rose Petroleum plc. Total consideration for the purchase of the SDA Mill was $1.5 million. Pierce Carson, CEO commented, “We are pleased to have concluded the purchase of the SDA Mill and wish to thank Rose for their efforts in effecting a smooth transition of assets and personnel. We are delighted to welcome Rose as a major shareholder of Magellan.
“Acquisition of the SDA Mill will transform Magellan into a production company and is an exciting development for our shareholders,” continued Carson. “In November, we began limited processing operations under an interim toll agreement to process third-party ore. We intend to continue our strategy of resuming processing operations, building production and increasing cash flow.
“Now that we own the mill, we are focused on acquiring nearby sources of high-grade gold and silver ore that can be trucked to the mill for processing”, stated Carson. “We have identified and are evaluating several attractive properties for potential acquisition.”
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 t/d. 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.