MX Gold signs LOI to Acquire Cryptocurrency/Blockchain Mining Company Based in Manitoba
MX Gold Corp. / MX Gold signs LOI to Acquire Cryptocurrency/Blockchain Mining Company Based in Manitoba . Processed and transmitted by Nasdaq Corporate Solutions. The issuer is solely responsible for the content of this announcement.
VANCOUVER, British Columbia, Oct. 13, 2017 (GLOBE NEWSWIRE) -- MX Gold Corp. (TSX-V:MXL) (FSE:0DV) (OTCQX:MXLGF) (the "Company" or "MX Gold") is pleased to announce that the Company has entered into a letter of intent (the "Agreement") to acquire all of the shares of Symple Internet Financial Ltd. ("Symple"), an arm's length private British Columbia cryptocurrency/blockchain mining company based in Manitoba. The proposed acquisition is the Company's first foray outside the mineral exploration space and is intended to be a pilot project to determine whether further investment in the growing cryptocurrency industry is warranted. The Company has had preliminary discussions about the proposed transaction with the TSX Venture Exchange (the "Exchange") and anticipates that it will proceed as a Reviewable Transaction but not a Change of Business in accordance with Exchange policies.
Pursuant to the terms of the Agreement, the Company has agreed to pay $150,000 and issue 4.5 million shares to the shareholder of Symple in consideration for all of the shares thereof. The closing of the transaction is subject to customary conditions precedent, including approval by the Exchange and the entry into a consulting agreement with the principal shareholder and executive of Symple for a minimum term of 12 months for compensation of $8,000 per month. The Agreement contemplates that a definitive agreement will be entered into on or before November 1, 2017 and closing will occur on or before December 1, 2017.
Symple operates a cryptocurrency/blockchain mining operation in a 5,000 sq. ft. leased facility in Manitoba with the possibility to expand in the future under current leases. Symple has been successfully operating in the cryptocurrency business for approximately 1 year.
Dan Omeniuk, CEO of the Company stated, "The blockchain space is growing and has the power to change the way finances are conducted globally. We are excited to have the opportunity to work with Albert Buu, the founder of Symple, who has a vast knowledge in the blockchain space and his educational background in computer engineering."
In other corporate news, the Company confirms that it has received final Exchange approval for the $4 million equity financing that closed on September 9, 2017, as further disclosed in its news release of even date.
About MX Gold
MX Gold is a junior mining company focused on the exploration and development of advanced projects located in Mexico and British Columbia, Canada. The company's primary focus, is the Magistral del Oro tailings project located 392 km SW of Chihuahua and includes a 500 tonnes-per-day dynamic cyanide countercurrent system plant constructed in 2013, which the Company plans to expand to 1,000 tonnes-per day. The Company also owns 50% of the IDS Project, which includes a smelter that was completed in 2014 for a throughput capacity of 50 tonnes per day. The smelter was built to receive and process material from small-scale miners across the state of Durango and beyond. MX Gold has acquired a substantial land package of approximately 22,881 acres in the heart of the Golden Triangle. The Company's primary focus in British Columbia is its Willa gold and copper project located 12 kilometers south of Silverton, B.C. In 2015, MX Gold Corp. completed the accretive acquisition of the Willa project and the Max Molybdenum Mine and Mill Complex. The Willa mine is located 135 kilometers south of the Max Mill. MX Gold Corp. can also elect to reopen the Max Molybdenum mining operation once world Moly prices improve. For updates on the Company's projects please visit our website. www.mxgoldcorp.com
On behalf of the Board of Directors,
Akash Patel, Vice President and Director, MX Gold Corp.
For further information, please contact
Dan Omeniuk, CEO
Or by email to:
Neither the TSX Venture Exchange Inc. nor its Regulation Service Provider (as that term is defined in the policies of the TSX Venture Exchange Inc.) accepts responsibility for the adequacy or accuracy of this press release.
Statements in this news release that are not historical facts are forward-looking statements. Forward-looking statements are statements that are not historical, and consist primarily of projections - statements regarding future plans, expectations and developments. Words such as "expects", "intends", "plans", "may", "could", "potential", "should", "anticipates", "likely", "believes" and words of similar import tend to identify forward-looking statements. Forward-looking statements in this news release include the anticipation of entering into and closing a definitive agreement with respect to the acquisition of Symple and the possibility of expanding the number of units operated by such company. All of these forward-looking statements are subject to a variety of known and unknown risks, uncertainties and other factors that could cause actual events or results to differ from those expressed or implied, including, without limitation: the Company's ability to enter into and close the definitive agreement and acquire Symple; the ability to obtain Exchange approval with respect to the transactions; MX Gold's ability to attract and retain qualified personnel and management, including the proposed consulting agreement with Mr. Buu; and the ability of the Company to fund its operations, as well as other risks and uncertainties identified under the heading "Risk Factors" in the Company's continuous disclosure documents filed on SEDAR. You are cautioned that the foregoing list is not exhaustive of all factors and assumptions which may have been used. MX Gold cannot assure you that actual events, performance or results will be consistent with these forward-looking statements, and management's assumptions may prove to be incorrect. These forward-looking statements reflect current expectations regarding future events and operating performance and speak only as of the date hereof and MX Gold does not assume any obligation to update forward-looking statements if circumstances or management's beliefs, expectations or opinions should change other than as required by applicable law. For the reasons set forth above, you should not place undue reliance on forward-looking statements.
The issuer of this announcement warrants that they are solely responsible for the content, accuracy and originality of the information contained therein.
Source: MX Gold Corp. via Globenewswire