- Xali Gold Corp. (XGC) signed a profit-sharing agreement with Minera Cinco Reales (MCR) S.A. de C.V. on the San Dieguito de Arriba (SDA) Plant in Mexico
- MCR will be the only operator of the plant and will have a 14-month period to use the plant for its own benefit
- MCR will make advance payments of net profits to Xali Gold for a total of US$19,5000, paid in three instalments
- Xali has extended the Production Earn-In Option Agreement with Sun River Gold Corp on the Tailings Project in El Oro, Mexico
- CEO Joanne Freeze joined The Market Herald’s Sabrina Cuthbert to discuss the agreements
- Xali Gold acquires gold and silver projects with near-surface exploration potential, near-term production potential and previous mining histories
- Xali Gold Corp. (XGC) opened with a gain of 8.33 per cent, trading at $0.065 per share
Xali Gold (XGC) has signed a profit-sharing agreement with Minera Cinco Reales (MCR) S.A. de C.V. on the San Dieguito de Arriba (SDA) Plant in Mexico.
Minera Cinco Reales operates several mines and processing plants in northern and central Mexico which produce gold, silver, copper, lead and zinc.
MCR will be the only operator of the plant and will have the exclusive option to obtain permits and refurbish the plant and equipment to operational status. It will also manage and operate the plant for its benefit for an initial period of 14 months.
Joanne Freeze, President and CEO of Xali Gold, commented,
“This new agreement with MCR allows us to follow through with our mandate of putting our assets to work to provide cash flow for our flagship El Oro Hard Rock Project by giving us two opportunities for profit sharing.”
MCR has the right to renew the agreement every 14 months unless Xali Gold has reason to cancel the agreement due to non-performance payments or misuse of the plant.
Xali Gold will have the right to receive 15 per cent of the net profits generated by the plant or minimum payments as follows:
- US$10,000 in the fourth month from signing the agreement
- US$20,000 in the fifth month
- US$30,000 in the sixth month
- US$40,000 in the seventh to tenth months
- US$50,000 from month eleven and thereon
Before the fourth month, MCR will make advance payments of net profits to Xali Gold for a total of US$19,5000, paid in three instalments.
Xali has extended the Production Earn-In Option Agreement with Sun River Gold Corp on the Tailings Project in El Oro, Mexico.
Sun River has the option to acquire 100 per cent of the Tailings Project from Minera CCM El Oro Jales (Xali Gold’s subsidiary) by making staged payments totalling US$500,000, bring the tailings into commercial production by December 31, 2023, and grant a 5 per cent NPI to Xali.
CEO Joanne Freeze joined The Market Herald’s Sabrina Cuthbert to discuss the agreements.
Xali Gold acquires gold and silver projects with near-surface exploration potential, near-term production potential and previous mining histories.
Xali Gold Corp. (XGC) opened with a gain of 8.33 per cent, trading at $0.065 per share.