Xali Gold Announces a Modification to Deal Terms for SDA Plant in Mexico
25 Abril 2024 - 8:00AM
Xali Gold Corp. (TSXV:XGC) ("Xali Gold” or the “Company”) is
pleased to announce that it has granted a temporary modification to
the deal terms with Mexican company, Grupo Minero WIYA
(“
WIYA”) regarding the San Dieguito de Arriba
(“
SDA”) Plant in Nayarit, Western Mexico. While
the original Rent to Purchase Agreement as per the Xali Gold News
Release dated December 18, 2023 remains in place, WIYA and the
Company have agreed to a three month modification of terms so that
WIYA has time to better develop their mining
operations.
“We are pleased that WIYA was able to put our
SDA Plant into operation and demonstrate that it functions well,”
says Joanne Freeze, President and CEO of Xali Gold. “We remain
encouraged that our business relationship with WIYA could develop
into a long-term mutually beneficial partnership for developing
various small mines in Nayarit using our exploration skills and
their financial strength.”
Operation of the plant was temporarily put on
hold in March 2024 as WIYA was unable to supply sufficient
mineralized material to the plant to sell concentrates, receive a
steady income and make payments to the Company.
Terms of the Temporary Modification to
Rent to Purchase Agreement
WIYA Agrees to:
- Pay US$45,000 to Xali Gold within
15 days from the plant restarting, which will be credited against
the final payment due as part of the Rent to Purchase agreement
dated December 8, 2023.
- Pay Xali Gold US$30.00/ton for each
ton processed with bi-weekly minimum payments of US$30,000.
Processing is expected to be between 2,700 and 3,000 tons per month
and monthly adjustments of the overall tonnage processed will also
be paid. For example, if 3,000 tons are processed during one month,
then payments to Xali Gold would total US$90,000.
- Maintain a minimum of 1,500 tons of
mineral at the plant with a guaranteed value, based on
metallurgical tests, to initially operate for at least 15 days with
reasonable profits.
The rest of the general terms of the December 8,
2023 Rent to Purchase Agreement between WIYA and Xali Gold not
temporarily modified in this 3 month agreement, remain in force.
The profits from the partnership will be shared equally with
Magellan Acquisitions Corp. (“Magellan”), as the
Company and Magellan each own 50% of the SDA plant, as per the earn
in agreement with Magellan.
During the lease period, Xali Gold will provide
adequate supervision and will authorize the personnel who will
operate in the SDA Plant. Xali Gold also has the right to
coordinate all technical and administrative activities, in order to
assist WIYA in the operation.
About Xali Gold
Xali Gold has gold and silver projects in Peru
and Mexico. The Company’s flagship project El Oro is a district
scale gold project encompassing a well-known prolific high-grade
gold dominant gold-silver epithermal vein system in Mexico. The
project covers 20 veins with past production and more than 57 veins
in total, from which approximately 6.4 million ounces of gold and
74 million ounces of silver were reported to have been produced
from just two of these veins (Ref. Mexico Geological Service
Bulletin Nr. 37, Mining of the El Oro and Tlapujahua Districts.
1920, T. Flores).
Modern understanding of epithermal vein systems
indicates that several of the El Oro district’s veins hold
excellent discovery potential, particularly below and adjacent to
the historic workings of the San Rafael Vein, which was mined to an
average depth of only 200m.
Xali Gold is dedicated to being a responsible
Community partner.
Joanne C. Freeze, P.Geo., President and CEO is
the Qualified Person as defined by National Instrument 43-101 for
the projects discussed above. Ms. Freeze has reviewed and approved
the contents of this release.
Neither the TSX Venture Exchange nor its
Regulation Services Provider accepts responsibility for the
adequacy or accuracy of this release.
Forward-looking InformationThis
news release may contain forward-looking information (as such term
is defined under Canadian securities laws) including but not
limited to historical production records. While such
forward-looking information is expressed by Xali Gold in good faith
and believed by Xali Gold to have a reasonable basis, they may
address future events and conditions and are therefore subject to
inherent risks and uncertainties including those set out in Xali
Gold’s MD&A. Factors that cause the actual results to differ
materially from those in forward-looking information include,
without limitation, gold prices, results of exploration and
development activities, regulatory changes, defects in title,
availability of materials and equipment, timeliness of government
approvals, potential environmental issues, availability of capital
and financing and general economic, market or business conditions.
Xali Gold expressly disclaims any intention or obligation to update
or revise any forward-looking information, whether as a result of
new information, future events or otherwise, except in accordance
with applicable securities laws.
On behalf of the Board of Xali Gold
Corp.
“Joanne Freeze” P.Geo.President, CEO and
Director
For further information please contact:Joanne
Freeze, President & CEOTel: + 1 (604)
689-1957info@xaligold.com
NR 129
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