RSS SubscribeMarch 4, 2022
Toronto, Ontario – March 4, 2022 – Magna Gold Corp. (TSXV: MGR, OTCQB: MGLQF) (“Magna” or the “Company”), announces that it has entered into an amending agreement (the “Amending Agreement”) in respect of the secured promissory note and guaranty dated February 11, 2021 (as first amended on September 21, 2021, the “Note”) previously issued by Magna’s subsidiary, Molimentales del Noroeste, S.A. (“Molimentales”), in favour of Auramet International LLC (the “Lender”), an arm’s length third party. The amendments to the Note provide for, among other things, the disbursement to Molimentales of an additional US$2,000,000 loan from the Lender, which will be governed pursuant to the terms of the amended Note (the “New Loan” and together with the US$2,000,000 in principal amount previously outstanding under the original Note, the “Loan”). The proceeds of the New Loan are expected to be used for general working capital and other business and operational needs of the Company and its subsidiaries.
In consideration of the Lender’s agreement to advance the New Loan, the Company has agreed to issue to the Lender 1,500,000 non-transferable common share purchase warrants of the Company (the “Bonus Warrants”). Each Bonus Warrant is exercisable into one common share of the Company for a period of one year following the date of issuance at an exercise price of C$0.78 per share. The issuance of the Bonus Warrants remains subject to the approval of the TSX Venture Exchange (the “Exchange”). Further, the Bonus Warrants, and any shares issued on exercise thereof, will be subject to a hold period expiring four months and a day following the date of issuance.