Magellan Pays Troy Deposit Regarding Andorinhas Processing Plant, Associated Equipment and Mining Fleet
VANCOUVER, BRITISH COLUMBIA--(Marketwired - Sept. 24, 2015) - Magellan Minerals Ltd. (TSX VENTURE:MNM) ("Magellan") is pleased to announce that it has paid the non-refundable deposit of US$150,000 to ASX listed Troy Resources Ltd. ("Troy") relating to the purchase of Troy's gold processing plant, associated equipment and mining fleet ("Andorinhas Assets") at its Andorinhas mine located in eastern Para state, Brazil (see the Company's news release dated August 26, 2015).
Magellan has until December 15, 2015 to pay a further US$3,350,000 following which it will take possession of the Andorinhas Assets. This payment may, at Magellan's election, be made through the issuance of shares to Troy up to a maximum of 9.99% of Magellan's issued and outstanding share capital at that time. A final payment of US$1,000,000 will be made to Troy following the production of 20,000oz of gold or February 23, 2017, whichever comes soonest.
The agreement is subject to approval from the TSX Venture Exchange.
John Kiernan P.Eng, Magellan's VP Project Development and a "qualified person" within the definition of that term in NI 43-101, has reviewed the technical information contained in this news release.
Magellan Minerals (TSX VENTURE:MNM) is a TSX Venture Exchange listed exploration and development company with two advanced gold properties in the Tapajos Province of northern Brazil. The Coringa project contains underground Measured resources of 110,000oz of gold (0.27Mt @ 12.8g/t gold) and underground Indicated resources of 443,000oz of gold (1.91Mt @ 7.2g/t gold) as well as Inferred resources of 360,000oz of gold (2.0Mt @ 5.4g/t gold) at a cut-off of 2.5g/t gold. (See the Company's news release dated April 8, 2015). The Cuiu Cuiu project contains 100,000oz of gold in the Indicated category (3.4Mt @ 1.0g/t gold) and 1,200,000oz of gold in the Inferred category (31Mt @ 1.2g/t gold). (See the report entitled "Resource Estimate and Technical Report for the Cuiu Cuiu Project, Tapajos Region, North Central Brazil" dated April 19, 2011 and filed on SEDAR on April 21, 2011, and the Company's news release dated March 8, 2011).
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
News release #2015-8