MX buys 360 cryp­tocur­rency min­ers, can­cels Sym­ple deal

MX Gold Corp. has bought 360 Avalon Miner 741 cryp­tocur­rency min­ing sys­tem units, which it ex­pects to re­ceive around Nov. 20, 2017. The com­pany has can­celled its LOI with Sym­ple In­ter­net Fi­nan­cial Ltd.

Stockwatch Daily - - FRONT PAGE - Mr. Dan Ome­niuk re­ports

MX GOLD Corp. has pur­chased 360 cryp­tocurre ncy min­ing sys­tems as part of the com­pany’s pi­lot project in the cryp­tocurre ncy min­ing space. The com­pany has or­dered 360 units of the Avalon Miner 741 cryp­tocur­rency min­ing sys­tem, made by Canaan Cre­ative Co., which units are ex­pected to be de­liv­ered on or about Nov. 20, 2017. As­sum­ing timely de­liv­ery, man­age­ment ex­pects to com­mence cryp­tocur­rency min­ing op­er­a­tions by mid-De­cem­ber. To house the cryp­tocur­rency min­ing op­er­a­tions for this pi­lot project, MX Gold is cur­rently ne­go­ti­at­ing a 15,680-square-foot lease with 3409377 Man­i­toba Ltd. for premises lo­cated at 900 Fisher Ave., La Portage, Man., and ac­cess to 2.5 megawatts of power. The pro­posed lease will en­able the com­pany to take ad­van­tage of com­pet­i­tive power rates, which are 5.4 cents per kilo­watt-hour.

Since 3409377 Man­i­toba Ltd. is a com­pany wholly owned by Dan Ome­niuk, chief ex­ec­u­tive of­fi­cer of MX Gold, the pro­posed lease is considered a re­lated party trans­ac­tion un­der Mul­ti­lat­eral In­stru­ment 61-101. The pro­posed lease is ex­empt from the for­mal val­u­a­tion re­quire­ment un­der Sec­tion 5.4 of MI 61-101, by virtue of the ex­emp­tion con­tained in Sec­tion 5.5(a) of MI 61-101, and from the mi­nor­ity share­holder ap­proval re­quire­ment un­der MI 61-101, by virtue of the ex­emp­tion con­tained in sec­tion 5.7(a) of MI 61-101, as the fair mar­ket value of the con­sid­er­a­tion un­der the pro­posed lease does not ex­ceed 25 per cent of the com­pany’s mar­ket cap­i­tal­iza­tion.

Mr. Ome­niuk stated: “Our com­pany is look­ing for­ward to de­vel­op­ing a pi­lot project in­volv­ing a cryp­tocur­rency min­ing op­er­a­tion to de­ter­mine whether fur­ther in­vest­ment in the grow­ing cryp­tocur­rency in­dus­try is war­ranted.”

Ad­di­tion­ally, MX Gold has de­cided not to pro­ceed with the let­ter of in­tent for the ac­qui­si­tion of Sym­ple In­ter­net Fi­nan­cial Ltd., which ter­mi­nated in ac­cor­dance with its terms on Nov. 6, 2017. The com­pany has in­stead de­ter­mined to in­ter­nally de­velop its own pi­lot cryp­tocur­rency min­ing op­er­a­tions lo­cated in Man­i­toba, as dis­closed above.

Mr. Ome­niuk also stated: “MX’s de­ci­sion to take on this project in­ter­nally will re­sult in re­duced di­lu­tion to share­hold­ers, as MX will no longer be re­quired to is­sue shares in con­nec­tion with the pur­chase of Sym­ple.”

About MX Gold Corp.

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 kilo­me­tres south­west of Chi­huahua and in­cludes a 500-tonne-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 per cent 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.

We seek Safe Har­bor.

Wal­ter A Jr Mart­ing, Hugh Charles McPher­son, Dan Ome­niuk, Akash Pa­tel, Ken­neth Clif­ford Phillippe, Lorne McLeod Warner

(MXL) Shares: 256,253,918

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