Rose Petroleum to potentially dispose of Mexico mill operation

Rose Petroleum has entered into a memorandum of understanding to potentially dispose of its mineral processing mill operation in San Dieguito de Arriba, Mexico, for $1.5m, including associated assets, licenses and agreements.

The memorandum was with Magellan Gold Corporation. The natural-resource business has operated the mill for 10 years and it was currently engaged in toll milling for third-party ore producers.

Rose had granted Magellan a 90-day option period, for a non-refundable $50,000 deposit, already paid to purchase the SDA Mill subject to the satisfaction of a number of conditions.

It added that the memorandum also provided Magellan with the option of extending this option period by a further 60 days in consideration of an additional $100,000, which would be credited against the final purchase price should the sale proceed.

Of the total price, $1.0m would be in cash, with a further $500,000 in restricted common stock in Magellan.

At 11:42 GMT, shares in AIM-quoted Rose were flat at 0.12p each.