One junior mining company looking to grow into Mexico’s next precious metals producer is Magna Gold Corp. (TSXV: MGR, OTCQB: MGLQF), which recently secured a C$10 million funding for its exploration activities across various projects this year.
On Friday Magna announced the second half of the arrangement, a US$5 million payment to vendor Argonaut Gold (TSX:AR), and promised to pay the remaining working capital balance of US$2.675 million in four monthly installments between July and October, 2021.
“We are very pleased to be fulfilling our obligations to Argonaut. With this payment behind us we are looking forward to reaching a steady rate of production at the San Francisco Mine and strengthening our balance sheet primarily through the cash flow generated by the operations,” said Magna’s President and CEO Arturo Bonillas, in the May 7 news release.
Among those actively exploring the mineral-rich regions of Mexico, one miner that is on a fast track to achieving intermediate status is Canada’s Magna Gold Corp. (TSXV: MGR, OTCQB: MGLQF), which has been actively acquiring and developing quality precious metals properties in Mexico.
The company’s flagship project is the past-producing San Francisco mine, located 150 km north of Hermosillo, Sonora’s state capital. The 47,395-hectare property consists of two previously mined open pits (San Francisco and Chicharra) — which Magna plans to reopen soon — and associated heap leaching facilities located close to the San Francisco pit.