Magna Gold Corp. - MGLQF STOCK NEWS

On March 3, 2023, Magna Gold Corp. (OTCPINK: MGLQF) announced it has filed a Notice of Intention to Make a Proposal under Canada's Bankruptcy and Insolvency Act, seeking creditor protection to restructure its financial affairs. KSV Restructuring Inc. is appointed as the Proposal Trustee. Concurrently, its subsidiary, Molimentales del Noroeste S.A. de C.V., sought similar protection in Mexico to address its financial situation. The TSX Venture Exchange will transfer Magna's shares to the NEX Board effective March 8, 2023, with the trading symbol changing from MGR to MGR.H. The management will retain daily operational responsibilities during this period.

Magna Gold Corp. (MGLQF) reported Q3 2022 results, showing a significant decrease in production and revenue. Gold production fell to 9,256 ounces, down from 19,102 ounces in Q3 2021. Revenues plummeted to $15.7 million from $32.8 million year-over-year. Mining activities were scaled back, with tonnes mined reduced to 3.2 million from 6.2 million a year earlier. The company faced a negative working capital of $44.4 million. In response, Magna is initiating a strategic review to optimize operations and reduce costs.

Magna Gold Corp. (OTCQB: MGLQF) released its Q2 2022 financial results, reporting revenues of $21.0 million, slightly down from $21.2 million in Q2 2021. Gold production decreased to 10,795 ounces from 11,713 ounces. Total tonnes mined dropped to 5.9 million, while processing increased to 1.4 million tonnes. Production costs rose significantly to $24.7 million, primarily due to inventory drawdown. Cash improved to $1.4 million, but working capital deteriorated to negative $35.4 million. The company has retracted FY 2022 guidance due to operational challenges at the San Francisco Mine.

Magna Gold Corp. (MGLQF) held its annual meeting on June 23, 2022, where 41.7% of outstanding shares were voted. A total of 38,262,960 shares were cast from 91,760,960 issued shares. Directors elected included Arturo Bonillas and Colin Sutherland, among others. Key resolutions passed included the appointment of Baker Tilly WM LLP as auditor and approval of the Stock Option Plan. CEO Arturo Bonillas highlighted the company's achievements, including the acquisition and successful operation of the San Francisco mine, emphasizing continued commitment to safety and future growth.

Magna Gold Corp. (TSXV: MGR, OTCQB: MGLQF) has announced the filing of an independent technical report titled "NI 43-101 Technical Report Initial Mineral Resource Estimate for the Margarita Silver Project Chihuahua, Mexico," dated May 24, 2022. This report follows up on a previous announcement from April 21, 2022, and has an effective date of April 8, 2022. The report was authored by experts from Micon International Limited and Servicios Geológicos IMEx, S.C. It is available for review under Magna's profile on SEDAR.

Magna Gold Corp. (MGLQF) reported significant operational and financial improvements for Q1 2022. Gold production increased by 21%, reaching 11,874 ounces, and revenue surged by 54% to $23.5 million, driven by consistent production at the San Francisco Mine. The amount of ore processed rose 90% to 1.4 million tonnes. However, production costs also increased by 37% to $21.3 million due to higher tonnage and processing rates. Despite these costs, net loss slightly decreased to $3.3 million, with cash flow from operations improving to $6.6 million, reflecting a solid operational performance.

Magna Gold Corp. (MGLQF) announced its maiden mineral resource estimate for the Margarita silver deposit in Chihuahua, Mexico. The Indicated resources are estimated at 1.854 million tonnes at 204.9 g/t Ag, amounting to 12.22 million ounces of silver, while Inferred resources are 0.454 million tonnes at 153.4 g/t Ag for 2.24 million ounces. The high-grade core is estimated at 0.78 million tonnes at 332.1 g/t Ag, equating to 8.32 million ounces. The project shows strong growth potential with additional parallel veins discovered.

Magna Gold Corp. has successfully completed a debt settlement by issuing 1,660,132 common shares at $0.76 each to PEAL de Mexico S.A. de C.V., totaling US$1,000,000. This transaction reduces Magna's debt from US$4,054,351 to US$3,054,351. The settlement is classified as a related party transaction under MI 61-101, but the company is exempt from formal valuation and minority shareholder approval requirements. Common shares issued will be under a four-month hold period until August 20, 2022.

Magna Gold Corp. (OTCQB: MGLQF) has amended its Settlement Agreement with PEAL de Mexico S.A. de C.V. concerning outstanding amounts related to the San Francisco mine acquisition. The amendment allows for the issuance of common shares valued at US$1,000,000, reducing the debt from US$4,054,351 to US$3,054,351. This move showcases PEAL's commitment as a strategic stakeholder and is pending TSXV approval. The shares will be subject to a hold period of four months and a day post-issuance.