- Xali Gold Corp. (XGC) announces that Sun River Gold has arranged financing of approximately US$6.5 million to begin the planned tailings reprocessing operation
- Sun River said that most of the equipment required for the operation has been lined up, and it hopes to have it up and running by its Q4, 2022
- Xali Gold’s subsidiary, CCM has agreed with the municipality of El Oro, Mexico which allows the company rights to recover all available gold and silver from the tailings deposit
- Sun River has the option to acquire 100 per cent of the tailings project from CCM by making staged payments of a total US$500,000 and bring the tailings into commercial production by March 31, 2022
- The project is expected to include one year of engineering and construction, followed by four years of tailings material reclaim and processing
- Based on flotation test work done, a standard metallurgical flotation process is expected to recover 65 per cent of the gold and 60 per cent of the silver to a marketable concentrate
- Xali Gold Corp. (XGC) is up 16.6 per cent and is trading at $0.07 per share at 2:47 p.m. ET
Xali Gold Corp. (XGC) announces Sun River Gold has arranged financing of approximately US$6.5 million to begin the planned tailings reprocessing operation.
Final permits are expected to be received within one month.
Sun River also said that most of the equipment required for the operation has been lined up, and it hopes to have it up and running by its Q4, 2022.
Xali Gold’s subsidiary, CCM has agreed with the municipality of El Oro, Mexico which allows the company rights to recover all available gold and silver from the tailings deposit.
It must pay 8 per cent net profits interest (NPI) to the municipality.
Xali Gold also retains the first US$1.5 million from the 8 per cent NPI payable to the municipality and Sun River must make all the payments out to it.
Sun River has the option to acquire 100 per cent of the tailings project from CCM by making staged payments totalling US$500,000 and bring the tailings into commercial production by March 31, 2022.
Sun River must grant Xali Gold a 5 per cent NPI, its company’s royalty and the 8 per cent NPI to the municipality on production from the properties.
Sun River has agreed to purchase 25 hectares of land near the location of the Mexico mine tailings.
The project is expected to include one year of engineering and construction, followed by four years of tailings material reclaim and processing.
Based on flotation test work done, a standard metallurgical flotation process is expected to recover 65 per cent of the gold and 60 per cent of the silver to a marketable concentrate.
Xali Gold Corp. (XGC) is up 16.6 per cent and is trading at $0.07 per share at 2:47 p.m. ET.
