Magna Gold Announces Grant of Stock Options

Rhea-AI Summary

Magna Gold Corp. (OTCQB: MGLQF) announced the grant of 1,000,000 stock options to its officers and employees, exercisable at CAD $0.90 per share until September 3, 2026. The options vest immediately, with the stock's closing price at CAD $0.94 per share on September 2, 2021. The company operates in Mexico, focusing on gold and silver production, with a commitment to advancing its flagship San Francisco Mine.

Positive

• Granting 1,000,000 stock options may incentivize employee performance.
• Stock options have a strike price of CAD $0.90, slightly below market price, potentially aligning employee interests with shareholder value.

Negative

• Stock options could dilute existing shareholder equity if exercised.
• Market price fluctuation may impact the intrinsic value of stock options granted.

TORONTO, Sept. 3, 2021 /PRNewswire/ - Magna Gold Corp. (TSXV: MGR) (OTCQB: MGLQF) ("Magna" or the "Company") announced today that, pursuant to the Company's stock option plan, it has granted a total of 1,000,000 stock options to officers and employees of the Company. Each option is exercisable at CAD $0.90 per common share of the Company until September 3, 2026 with the stock options vesting immediately. The closing price of the Company's common shares on September 2, 2021, the date prior to the grant of the stock options, was CAD $0.94 per share.

About Magna Gold Corp
Magna is a Mexico focused gold/silver production company focused on acquiring, exploring, developing and operating quality precious metals properties in Mexico. It is committed to advancing its 100% owned flagship San Francisco Mine and other highly prospective mineral properties located in Sonora and in Chihuahua. The primary strength of the Company is the team of highly experienced mining professionals with a proven track record of developing properties in Mexico from discovery to production. Magna employs community members and services in its operations.

ON BEHALF OF THE BOARD OF DIRECTORS

Arturo Bonillas

President and CEO

Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

Cautionary Statements

This News Release includes certain "forward-looking statements" which are not comprised of historical facts. Forward-looking statements include estimates and statements that describe the Company's future plans, objectives or goals, including words to the effect that the Company or management expects a stated condition or result to occur. Forward-looking statements may be identified by such terms as "believes", "anticipates", "expects", "estimates", "may", "could", "would", "will", or "plan". Since forward-looking statements are based on assumptions and address future events and conditions, by their very nature they involve inherent risks and uncertainties. Although these statements are based on information currently available to the Company, the Company provides no assurance that actual results will meet management's expectations. Risks, uncertainties and other factors involved with forward-looking information could cause actual events, results, performance, prospects and opportunities to differ materially from those expressed or implied by such forward-looking information. Forward-looking information in this news release includes, but is not limited to, the Company's objectives, goals or future plans. Factors that could cause actual results to differ materially from such forward-looking information include, but are not limited to failure to identify mineral resources, failure to convert estimated mineral resources to reserves, the inability to complete a feasibility study which recommends a production decision, the preliminary nature of metallurgical test results, delays in obtaining or failures to obtain required governmental, environmental or other project approvals, political risks, uncertainties relating to the availability and costs of financing needed in the future, changes in equity markets, inflation, changes in exchange rates, fluctuations in commodity prices, delays in the development of projects, capital, operating and reclamation costs varying significantly from estimates and the other risks involved in the mineral exploration and development industry,  risks related to the effects of COVID-19 on the Company; and those risks set out in the Company's public documents filed on SEDAR. Although the Company believes that the assumptions and factors used in preparing the forward-looking information in this news release are reasonable, undue reliance should not be placed on such information, which only applies as of the date of this news release, and no assurance can be given that such events will occur in the disclosed time frames or at all. The Company disclaims any intention or obligation to update or revise any forward-looking information, whether as a result of new information, future events or otherwise, other than as required by law.

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SOURCE Magna Gold Corp.

FAQ

What stock options did Magna Gold Corp. announce on September 3, 2021?

Magna Gold Corp. announced the grant of 1,000,000 stock options, exercisable at CAD $0.90 until September 3, 2026.

What was the closing price of Magna Gold Corp. shares before the stock options were granted?

The closing price on September 2, 2021, was CAD $0.94 per share.

What is the significance of the stock options granted by Magna Gold Corp.?

The stock options may incentivize performance among officers and employees, aligning their interests with that of shareholders.

How might the stock options impact Magna Gold Corp.'s stock performance?

If exercised, the stock options could lead to dilution of existing shares.