VANCOUVER, BRITISH COLUMBIA — (Marketwire) — 05/15/12 — (TSX VENTURE: MNM)(OTCQX: MAGNF) („Magellan“) is pleased to announce the closing of the previously announced transaction with Sandstorm Gold Ltd. („Sandstorm“) (see press release dated ), whereby Magellan will grant Sandstorm Gold Ltd. a 2.5% net smelter returns royalty („NSR“) on the Coringa gold project („Coringa“) and a 1.0% NSR on the Cuiu Cuiu gold project („Cuiu Cuiu“), both of which are located in Para state, Brazil. As consideration, Sandstorm paid Magellan a cash payment of US$7.5 million and subscribed for one million common shares of Magellan at a price of $0.50 per share for total proceeds of $500,000.
Magellan Minerals (TSX VENTURE: MNM)(OTCQX: MAGNF) is a TSX Venture Exchange-listed exploration and development company with two advanced gold properties in the Tapajos Province of northern Brazil. The Cuiu Cuiu project contains 100,000oz of gold in the Indicated category (3.4Mt @ 1.0g/t gold) and 1,200,000oz of gold in the Inferred category (31Mt @ 1.2g/t gold). The Coringa project contains Measured and Indicated resources of 561,000oz of gold (3.2Mt @ 5.5g/t gold) and Inferred resources of 534,000oz of gold (5.5Mt @ 3.0g/t gold).
This news release may contain forward-looking statements including but not limited to comments regarding the timing and content of upcoming work programs, geological interpretations, receipt of property titles, potential mineral recovery processes, etc. Forward-looking statements address future events and conditions and therefore, involve inherent risks and uncertainties. Actual results may differ materially from those currently anticipated in such statements.
News Release #2012-13
The TSX Venture Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of this release.
Contacts: Magellan Minerals Ltd. Alan Carter President and CEO 604.676.5663
Magellan Minerals Ltd. Jennifer Duthie Corporate Communications Manager 778.370.0519
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