Mexus Gold US Completes Sale of the San Felix Mine
CARSON CITY, Nev., March 31, 2014 (GLOBE NEWSWIRE) -- Mexus Gold US (OTCQB:MXSG) ("Mexus" or the "Company") announced today that on March 24, 2014, the Company entered in to an agreement with First Pursuit Silver de Mexico S. De R.L. De C.V. ("FPV") whereby Mexus Gold US and Mexus Gold Mining S.A. de C.V. sold 100% of its interest in Mexus Enterprises S.A. de C.V. Mexus Enterprises S.A. de C.V. is the company's operating entity in Mexico which owned and operated the San Felix Project ("Project"). The total purchase price of $5,000,000 will be paid by the assumption of certain debt and in shares of common stock of Silver Pursuit Resources Ltd. and $4,000,000 in cash to be paid no later than March 24, 2015. Mexus will continue to hold a 50% security interest in the Project until such time as the full purchase price is paid by FPV. The agreement includes a full release of the Company and its affiliates from all potential claims and liabilities related to the Project, its former joint venture partners and allows the Company to retain possession of all owned machinery located at the San Felix Project.
Divesture of the San Felix mine will benefit the shareholders by providing the Company a significant opportunity to move forward with its mining plan at the Santa Elena/Julio property. CEO Paul Thompson stated, "Our shareholders will benefit greatly because dollar for dollar our investment at Santa Elena/Julio has the significant potential to realize a far superior long term return on investment. The sale of the San Felix presented itself and as a company, I felt it was best to sell our interest and focus our energies at the Santa Elena/Julio property which has been a goal of ours for some time now. In the end, we will make money on this deal and the experience we gained regarding mining operations in Mexico was invaluable."
Mexus Gold US also announced that it is in the process of entering into a contract with an engineering, mine development, and mining firm to construct facilities and provide expertise to place the Santa Elena/Julio property into full production. The Company is also in the final stages of relocating its equipment from the San Felix Project to the Santa Elena/Julio property and should be finalized very soon. Paul Thompson added, "We expect to announce the details of this agreement within a week or two. I'm excited about this firm who will consult and partner with us throughout the process to achieve full production with uninterrupted operations. Now is the time for the Company to establish a more professional mining team by adding the appropriate expertise to the Board of Directors, as well as, additional key personnel to meet the expanding needs of Mexus Gold at the Julio/Santa Elena project. Going forward, our shareholders can expect to see frequent press releases and updates on our march to full production at the 100% owned Santa Elena/Julio property."
About Mexus Gold US
Mexus Gold US is a gold, silver and copper exploration company focused on projects in the Western United States and Northern Mexico. Mexus Gold US and its subsidiaries Mexus Enterprises S.A. de C.V. and Mexus Gold Mining S.A. de C.V. have several mining operations in Mexico including its Julio/Santa Elena property as well as other prospective areas awaiting additional exploration and evaluation. Mexus Gold Mining S.A. de C.V. and Mexus Enterprises S.A. de C.V. employ over 60 people and utilize third-party consultants and geologists to assess its mining exploration and operations for gold and other precious metal values. Founded in 2009, Mexus Gold US is committed to protecting the environment, mine safety and employing members of the communities in which it operates. For more information on Mexus Gold US, visit www.mexusgoldus.com.
Cautionary Statement
Forward looking Statement: Statements in this press release may constitute forward-looking statements and are subject to numerous risks and uncertainties, including the failure to complete successfully the development of new or enhanced products, the Company's future capital needs, the lack of market demand for any new or enhanced products the Company may develop, any actions by the Company's partners that may be adverse to the Company, the success of competitive products, other economic factors affecting the Company and its markets, seasonal changes, and other risks detailed from time to time in the Company's filings with the Securities and Exchange Commission. The actual results may differ materially from those contained in this press release. The Company disclaims any obligation to update any statements in this press release.
Contact
Mexus Gold US
Inquiries
Paul Dent, 425-478-4908
pdent@mexusgoldus.com