Magellan has announced that it has entered into a Memorandum of Understanding with Rose Petroleum plc, a
multi-asset natural resource business, to purchase an operating
floatation plant that also includes a precious metals leach circuit
and associated assets, licenses and agreements together,
the “SDA Mill”) located in the State of Nayarit, Mexico, for a total
consideration of US$1.5 million.

The mill’s normal operation is based on sales of floatation
concentrates to smelters, and payment for precious metals content.
The mill has operated for ten years and currently is engaged in toll milling for third party ore producers