(CSE: TRG)
Tarachi President and CEO,
Details on the MDO Plant
- The MDO Plant is a permitted 1,000 TPD tailings processing operation
- Covering 600 hectares, the MDO Plant encompasses the Magistral mill tailing deposit, processing plant, and a tailing disposal facility
- Historical tailings resources estimates by:
Corporation Ambiental de Mexico S.A. de C.V. (CAM) in 2011
1.29 million tonnes grading 2.06 g/tonne gold- Unpublished 2018 PEA report 1.30 million tonnes grading 2.11 grams/tonne gold
A qualified person has not done sufficient work to classify the historical estimate as current mineral resources or mineral reserves. The issuer is not treating the historical estimate as current mineral resources or mineral reserves.
- The MDO Plant is accessible by paved highway, 175 km from Parral, Chihuahua and from local area Santa Maria del
Oro , approximately 5 km south of the property
Manto is credited for consolidating the opportunity at the MDO Plant by resolving all past contractual disputes and established professional relationships with stakeholders and entering into formal agreements settling all disputes. Manto has also entered a formal agreement with the local Ejido which has been well received. Tarachi applauds Manto for these accomplishments.
Acquisition Terms
Pursuant to the LOI, Manto agreed to work exclusively with the Company towards a definitive agreement (the "Definitive Agreement") with the following indicative terms:
- Consideration for the Acquisition will consist of 4,000,000 common shares ("Common Shares") in the capital of Tarachi
- The Company will grant Manto a 15% net profits royalty and reimburse Manto up to
$500,000 for cash outlays - The Company will satisfy certain obligations of Manto by paying a total of
US$1,653,960 plus any Mexican value added tax (VAT) and issuing a total of 1,685,916 Common Shares over a period of six months - Manto will be entitled to the following bonus payments after completion of the Acquisition:
- On commencement of "commercial production" (to be defined in the Definitive Agreement) at the MDO Plant, the Company will issue Manto an aggregate of 4,000,000 Common Shares
- Following six months of continuous "commercial production" (to be defined in the Definitive Agreement) at the MDO Plant, the Company will issue Manto an additional 4,000,000 Common Shares and pay Manto
US$500,000 - Following 12 months of continuous "commercial production" (to be defined in the Definitive Agreement) at the MDO Plant, the Company will issue Manto an additional 4,000,000 Common Shares and pay Manto an additional
US$500,000 - Upon the Company earning
US$15,000,000 in revenue from the MDO Plant, the Company will pay MantoUS$1,000,000
Completion of the Acquisition is subject to a number of conditions, including but not limited to the following key conditions: (a) execution of the Definitive Agreement; (b) completion of satisfactory due diligence; and (c) receipt of all required regulatory, corporate and third party approvals, including the approval of the CSE and the fulfillment of all applicable regulatory requirements and conditions necessary to complete the Acquisition.
Update on Exploration Drilling Program
Underground diamond drilling commenced in late August at the historic
In recent sampling, (news release dated
The Company is now considering the mobilization of a second drill to commence work on the northern concessions at the same time.
Qualified Person
Engagements
Tarachi is pleased to announce it has entered into marketing agreements with each of Native Ads and Peak Investor Marketing for a total of
In respect to private placement closed by the Company on
The Company entered into a prospecting agreement with
Effective date:
Three-month anniversary of Effective Date:
Six-month anniversary of Effective Date:
To date, the Company has issued 13,126 Common Shares to
Contact Information: For more information and to sign-up to the mailing list, please contact:
Tel: (250) 574-5767
Email: lorne@tarachigold.com
SPECIAL NOTE REGARDING FORWARD LOOKING STATEMENTS
This news release includes certain "Forward–Looking Statements" within the meaning of the United States Private Securities Litigation Reform Act of 1995 and "forward–looking information" under applicable Canadian securities laws. When used in this news release, the words "anticipate", "believe", "estimate", "expect", "target", "plan", "forecast", "may", "would", "could", "schedule" and similar words or expressions, identify forward–looking statements or information. Forward-looking statements include, but are not limited to, statements with respect to: the terms and conditions of the proposed Acquisition; and the business and operations of the Company after the proposed Acquisition.
Forward–looking statements and forward–looking information relating to any future mineral production, liquidity, enhanced value and capital markets profile of Tarachi, future growth potential for Tarachi and its business, and future exploration plans are based on management's reasonable assumptions, estimates, expectations, analyses and opinions, which are based on management's experience and perception of trends, current conditions and expected developments, and other factors that management believes are relevant and reasonable in the circumstances, but which may prove to be incorrect. Assumptions have been made regarding, among other things, the price of silver, gold and other metals; costs of exploration and development; the estimated costs of development of exploration projects; Tarachi's ability to operate in a safe and effective manner and its ability to obtain financing on reasonable terms.
These statements reflect Tarachi's respective current views with respect to future events and are necessarily based upon a number of other assumptions and estimates that, while considered reasonable by management, are inherently subject to significant business, economic, competitive, political and social uncertainties and contingencies. Many factors, both known and unknown, could cause actual results, performance or achievements to be materially different from the results, performance or achievements that are or may be expressed or implied by such forward–looking statements or forward-looking information and Tarachi has made assumptions and estimates based on or related to many of these factors. Such factors include, without limitation: satisfaction or waiver of all applicable conditions to closing fluctuations in general macro–economic conditions; fluctuations in securities markets and the market price of Tarachi's common shares; and the factors identified under the caption "Risk Factors" in Tarachi's management discussion and analysis. Readers are cautioned against attributing undue certainty to forward–looking statements or forward-looking information. Although Tarachi has attempted to identify important factors that could cause actual results to differ materially, there may be other factors that cause results not to be anticipated, estimated or intended. Tarachi does not intend, and does not assume any obligation, to update these forward–looking statements or forward-looking information to reflect changes in assumptions or changes in circumstances or any other events affecting such statements or information, other than as required by applicable law.
SOURCE
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