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MX Gold closes purchase of 50% stake in Mexican gold tailings project

MX Gold Corp. on Jan. 23 said it paid all remaining installments and earned a 50% ownership stake and 45% net profit participating interest in the Magistral Del Oro gold tailings project in Mexico.

The company entered a binding deal in October 2016 with Firma Holdings Corp. subsidiary Gracepoint Mining Corp. to acquire the 50% stake in the tailings project.

The deal called for MX Gold to pay US$250,000 and invest C$2.2 million to meet current obligations and make various modifications, as well as for additional enhancements to the plant and for startup capital.

The project includes a fully permitted, 500-tonne-per-day dynamic cyanide counter current system plant. The company estimates that the plant can be fully operational within four to six months.