Magellan Gold Corporation (OTCQB: MAGE) a precious metals exploration and development company, announced today that the Company has created a new wholly owned subsidiary, M Gold Royalty to expand into the royalty business.
M Gold Royalty will engage in organically generating royalties derived from a portfolio of mineral property interests in North America. Royalties from this portfolio will be complemented by royalties from selected acquisitions as well as income from other strategic investments.
“We are excited to enter the royalty business,” said Mike Lavigne, President of Magellan Gold. “M Gold’s three-pronged strategy gives us the flexibility to generate royalty streams and other potential cash flow sources by leveraging our expertise in mineral exploration and development and identifying high-potential assets. We believe this effort could create value for our shareholders by targeting transactions that might be too small for the larger, more established royalty companies. To capitalize on acquisition and investment opportunities, M Gold intends to raise capital through one or more private offerings; however, at this time, we have yet to secure any commitments for such funding.”
Subject to successfully raising the necessary capital, M Gold Royalty’s business strategy comprises three core activities that have the potential to generate royalties and other income:
Royalty Generation: M Gold plans to leverage its technical expertise to acquire prospective properties on open ground, and to build value through low-cost work programs and targeting. M Gold hopes to be able to participate in project upside at no additional cost, with the potential for future royalty payments upon the commencement of production.
M Gold plans to selectively acquire royalty interests in quality assets that range from producing mines to exploration projects. The Company’s royalty generation activities could support the timely identification of acquisition opportunities.
M Gold plans to make strategic investments in companies with undervalued mineral assets that have upside exploration or development potential. Exit strategies can include equity sales, royalty positions, or a combination of both.
About Magellan Gold Corporation
Magellan Gold Corporation is focused on the exploration and development of precious metals in North America. Magellan’s flagship project is the Center Star Gold Mine in Idaho. We are additionally working to build a collection of interests in operating mines in the Western United States. Our goal going forward will be to achieve production and expand our resource base to achieve greater market recognition for the benefit of our shareholders.
Rock Tech Lithium Inc. (TSX-V: RCK) (OTCQX: RCKTF) (FWB: RJIB) (WKN: A1X... READ MORE
Power Metals Corp. (TSX-V: PWM) (FRANKFURT: OAA1) (OTCQB: PWRMF... READ MORE
Vox Royalty Corp. (TSX-V: VOX) (OTCQX: VOXCF) a returns focused ... READ MORE
Aldebaran Resources Inc. (TSX-V: ALDE) (OTCQX: ADBRF) is pleased ... READ MORE
Scorpio Gold Corporation (TSX-V: SGN) announces that further to i... READ MORE
We acknowledge the [financial] support of the Government of Canada.