MX Gold $MXL Purchases Cryptocurrency Bitcoin Miners


MX Gold Corp. is pleased to announce it has purchased 360 crypto currency mining systems as part of the Company’s pilot project in the cryptocurrency mining space.  The Company has ordered 360 units of the Avalon Miner 741 cryptocurrency mining system, made by Canaan Creative Co., which units are expected to be delivered on or about November 20, 2017. Assuming timely delivery, management expects to commence cryptocurrency mining operations by mid-December.

To house the cryptocurrency mining operations for this pilot project, MX Gold is currently negotiating a 15,680 sq.ft. lease with 3409377 Manitoba Ltd. for premises located at 900 Fisher Avenue, La Portage, Manitoba, and access to 2.5 MW of power.  The Proposed Lease will enable the Company to take advantage of competitive power rates, which are 5.4 cents CDN per kWh.

Since 3409377 Manitoba Ltd. is a company wholly-owned by Dan Omeniuk, CEO of MX Gold, the Proposed Lease is considered a related party transaction under Multilateral Instrument 61-101 – Protection of Minority Security Holders in Special Transactions. The Proposed Lease is exempt from the formal valuation requirement under Section 5.4 of MI 61-101, by virtue of the exemption contained in section 5.5(a) of MI 61-101, and from the minority shareholder approval requirement under MI 61-101, by virtue of the exemption contained in section 5.7(a) of MI 61-101, as the fair market value of the consideration under the Proposed Lease does not exceed 25% of the Company’s market capitalization.

“Our company is looking forward to developing a pilot project involving a cryptocurrency mining operation to determine whether further investment in the growing cryptocurrency industry is warranted.”

-Dan Omeniuk, CEO of MX Gold

Additionally, MX Gold has decided not to proceed with the Letter of Intent for the acquisition of Symple Internet Financial Ltd., which terminated in accordance with its terms on November 6, 2017.  The Company has instead determined to internally develop its own pilot cryptocurrency mining operations located in Manitoba, as disclosed above.