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"
Akash Patel, Vice President and
Director, MX Gold Corp.
For further information, please
contact
Dan Omeniuk,
CEO
Email: dano@mxgoldcorp.com
Or by email to:
info@mxgoldcorp.com
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.