While 2022 is almost over, junior mining companies are still busy as ever with many ramping up for future exploration activities.
Take Vancouver, B.C.-based Xali Gold Corp. (TSXV:XGC), who recently increased its ownership in the San Dieguito de Arriba (SDA) Plant in Western Mexico to 50 per cent by issuing shares to Magellan Acquisition Corp. In addition, the Company has started to receive advance Net Profits Interest (NPI) payments from Sun River Gold (SRG) for the El Oro Tailings Project in Mexico.
The SDA plant:
The company has increased its interest in the SDA plant by 20 by per cent through issuing 4,125,758 shares at a price of $0.066 to Magellan.
Third parties have begun to express interest, desiring to enter into joint ventures in Xali Gold’s Western Mexico assets, such as the SDA plant and near-surface high-grade mineralization near the plant.
Two mining groups based in Mexico are offering to provide both investment and expertise to get the SDA plant’s operating permits updated and the plant fully operational, as well as to develop and explore nearby mining properties. Xali Gold would provide expertise to explore additional gold and silver resources and/or standalone mineral discoveries. The agreements under discussion are to include profit sharing.
El Oro Tailings Project:
Xali Gold has started receiving advance US$15,000 NPI payments per month from SRG as part of the second extension agreement on the El Oro Tailings Project.
In January, Xali Gold announced an agreement that if commercial production were not achieved by May 1, 2022, the company would grant SRG a second extension on the Option until December 31, 2022, under certain terms, including advance payments. The company has hired a new permitting consultant to assist with the permitting process.
About the company:
Engaged in the exploration of mineral rights interests in Mexico and Peru, Xali Gold is a mineral exploration company that has a growth strategy to acquire gold and silver projects with near-surface exploration potential, near-term production potential and previous mining histories in Mexico and Peru.
Its projects include El Oro, El Oro Tailings, El Dorado, and Tres Marias.
El Oro continues to be its flagship asset because it is a district-scale gold project encompassing a well-known prolific high-grade gold-silver epithermal vein system in Mexico.
The project covers 20 veins with past production and more than 57 veins in total, from which approximately 6.4 million ounces of gold and 74 million ounces of silver were reported to have been produced from just two of these veins.
Just because the year is almost over doesn’t mean there isn’t excitement still simmering in the resource sector.
Xali Gold is a pioneer in the discovery of significant gold deposits in Mexico, focusing primarily on its El Oro property while actively exploring the gold potential of its other properties. Xali Gold is in a strong position to execute its goals at El Oro in addition to other projects in the portfolio.
The company’s stock has risen 33 per cent since this time last year and is set to continue its pace early in the new year.
FULL DISCLOSURE: This is a paid article produced by the Market Herald.
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