Mexus Announces A 1-for-20 Reverse Stock Split; Sells First Gold From Silver Chloride Material

Rhea-AI Summary

Mexus Gold US (OTCQB: MXSG) has completed a 1 for 20 reverse stock split effective today, aiming to enhance its stock price and facilitate uplisting opportunities. This decision follows the company's recent discovery of gold in silver chloride at its Santa Elena mine, with net gold recovery reaching $9,339.85. Mexus has contracted David H. Fell & Company for gold processing and aims to resolve variable recovery issues by year-end. The company is optimistic about its mineral properties, including the Mabel and 8 Brothers/370 properties, which hold substantial gold, silver, and copper potential.

Positive

• Completed a 1 for 20 reverse stock split to enhance stock price.
• Recent discovery of gold in silver chloride at Santa Elena mine.
• Achieved net gold recovery of $9,339.85.
• Contracted David H. Fell & Company for gold sales processing.
• Plans to resolve variable recovery issues by year-end.

Negative

• Reliance on convertible loans and share offerings in the past.

CABORCA, Mexico, Oct. 09, 2020 (GLOBE NEWSWIRE) -- Mexus Gold US (OTCQB: MXSG) (“Mexus” or the “Company) announced that it has completed a 1 for 20 reverse split of its stock. The stock will begin trading at its new price on the open of market today. The company believes that all involved with the company understand the necessity of this move given the volume of shares currently outstanding. Mexus also believes this move, along with the positive news recently announced, will allow the stock price to move up and accurately reflect the value of the company. An increased stock price will also give Mexus the opportunity to uplist the stock once all parameters for doing so have been met.

Mexus recently announced the discovery of a significant amount of gold trapped in silver chloride at the bottom of the heap leach pad located at its Santa Elena mine. As stated in its recent press release the company noted that its ball mill gravity recovery system would be used to recover this gold. The company can now state that gold recovery is occurring using this circuit and the results are excellent. In fact, as a result of these recent efforts, the company was able to sell gold with a net recovery of $9,339.85. Recovery of gold from this material continues. David H. Fell & Company of Commerce, CA has been contracted to handle Mexus’ gold sales processing. The gold sold was related directly to the silver chloride material. The variable recoveries the company had been experiencing will be fixed by year end. The removal of the silver chloride will enable the company to continue to mine material from the Julio shear zone and place it on the heap leach pad. In addition, Mexus will be able to mine high grade mineralized material from the Julio quartz system and run it through the ball mill gravity circuit. The company will be recovering gold from two different systems at the Santa Elena mine.

Mexus has numerous properties that it is currently involved with. Included with the Santa Elena mine are the Mabel property and the 8 Brothers/370 property. Both the Mabel and 8 Brothers/370 properties are highly sought after due to their potential gold, silver, copper holdings.

“This was the right time to do a reverse split. The company has had to use convertible loans and share offerings to keep the business moving forward. I believe that the need for future loans and the risk of additional dilution is now ended given our recent discoveries. I also believe that the combination of less shares in the market along with our recent findings will allow the stock to move to a much higher level which will be a true representation of the company’s value,” added Mexus CEO, Paul Thompson.

About Mexus Gold US

Mexus Gold US is an American based mining company with holdings in Mexico.  The fully owned Santa Elena mine is located 54km NW of Caborca, Mexico.  Mexus also owns rights to the Ures property located 80km N of Hermosillo, Mexico. This property contains 6900 acres and has both gold and copper on the property.   Founded in 2009, Mexus Gold US is committed to protecting the environment, mine safety and employing members of the communities in which it operates.

For more information on Mexus Gold US, visit www.mexusgoldus.com. 

Mexus Gold US (775) 721-9960

Cautionary Statement

Forward looking Statement: Statements in this press release may constitute forward-looking statements and are subject to numerous risks and uncertainties, including the failure to complete successfully the development of new or enhanced products, the Company's future capital needs, the lack of market demand for any new or enhanced products the Company may develop, any actions by the Company's partners that may be adverse to the Company, the success of competitive products, other economic factors affecting the Company and its markets, seasonal changes, and other risks detailed from time to time in the Company's filings with the Securities and Exchange Commission. The actual results may differ materially from those contained in this press release. The Company disclaims any obligation to update any statements in this press release. 

FAQ

What is Mexus Gold US's recent stock split announcement?

Mexus Gold US completed a 1 for 20 reverse stock split to enhance its stock price.

What are the financial implications of the reverse stock split for MXSG?

The reverse stock split aims to boost the stock price, making it more attractive for uplisting.

How much gold recovery has Mexus achieved recently?

Mexus achieved a net gold recovery of $9,339.85 from its Santa Elena mine.

What properties does Mexus Gold US currently hold?

Mexus holds the Santa Elena mine, Mabel property, and 8 Brothers/370 property, which have significant gold and copper potential.

Who is processing gold sales for Mexus Gold US?

David H. Fell & Company has been contracted to handle the gold sales processing for Mexus.