MX Gold Corp (MXLGF)

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MX Gold Corp. Enters into Agreement to Acquire Midas Gold Project in British Columbia's Golden Triangle; Adjacent to Aben Resources Ltd. And Announces Private Placement

Vancouver, B.C. - MX Gold Corp. (TSX-V: MXL) (FSE: ODV) (OTCQX: MXLGF) (the "Company" or "MX Gold") is pleased to announce that it has executed an agreement to acquire the Midas Gold Property (the "Midas Gold Project"), a large and prospective exploration project located in British Columbia's Golden Triangle.

The Midas Gold Project shares more than 40 km of contiguous claim boundaries with Aben Resources Ltd.'s ("Aben Resources") (TSX-V:ABN) Forrest Kerr Gold Project (the "Forrest Kerr Gold Project"). The Midas Gold Project is located immediately north of projects owned by Garibaldi Resources Ltd. (TSX-V:GGI) and Colorado Resources Ltd. (TSX-V:CXO).


Highlights:

- Positions MX Gold in the Golden Triangle.
- Claims contiguous to Barrick Gold and Aben Resources.
- Aben Resources advancing Forrest Kerr Gold Project.
- Known Skarn style mineralization on western property containing historic rock grab samples of up to 2.9 g/tonne gold (Minfile # 104B367) and 9.0% Copper (Minfile # 104B493).
- Eastern claims overly Hazelton Volcanics/Volcanoclastics


"The Golden Triangle has emerged as a leading gold discovery district and the Midas Gold Project complements our existing advanced operations in British Columbia. By consolidating a project area that has not only attracted the historic attention of senior gold producers such as Barrick Gold but also new promise through the exploration results of juniors in the area, MX Gold is now positioned to forge a path to discovery in the Golden Triangle. We look forward to growing our presence in the Golden Triangle and commencing a field exploration program," stated Dan Omeniuk, Chief Executive Officer of the Company.

About the Midas Gold Project
The Midas Gold Project consists of 12 mineral claims structured into three tenure blocks. The district-scale project comprises a total of approximately 9,264 ha (~22,881 acres). The project offers close proximity to the Essay Creek Access Road and the newly-constructed Alta Gas McLymont Hydro Power facility.





To view an enhanced version of this graphic, please visit: http://mxgoldcorp.com/midas-property/


The Midas Gold Project also represents the largest claim package contiguous with Aben Resources' Forrest Kerr Gold Project which recently disclosed mineralogical similarities between sulphide horizons on their adjacent project to those of GT Gold Corp.'s (TSX-V:GTT) Tatogga Property (see Aben Resources news release dated September 5, 2017, Aben Drills Into Notable Mineralization at Forrest Kerr Gold Project, Golden Triangle, British Columbia).

The target environment at the Midas Gold Project is a volcanics setting (Stuhini Group and Hazelton Group Volcanics) known to host mineralization elsewhere in the immediate area.

The specific location of the Midas Gold Project is also of particular importance as it not only surrounds much of the Forrest Kerr project being advanced by Aben Resources, but it also contains significant tenure held in past by Barrick Gold (the "Barrick Gold Area"). The Barrick Gold Area is of notable interest to Midas Gold as it is situated in a comparable environment to the Carcass Creek and Boundary Zones recently drilled by Aben Resources; being both situated east of the Forrest Kerr fault structure and mapped within Hazelton Group volcanics, specifically the Hazelton Group volcanics. Receding glaciation within the Golden Triangle has opened new exploration opportunities and physical access not previously available under historic exploration activity.

Exploration Plans

Reflecting the active exploration at nearby projects, the Company will review all historical data and develop a systematic exploration plan which may include undertaking geophysical airborne surveys to identify prospective exploration targets.

Terms of the Transaction

On September 15, 2017, the Company entered into the Midas Asset Purchase and Sale Agreement (the "Midas Agreement") with arm's length parties, whereby the Company agreed to acquire the Midas Gold Project (the "Acquisition"). In consideration for the Acquisition, the Company agreed to pay $50,000, issue a total of 12,000,000 common shares in the capital of the Company (each, a "Share") and grant a 2% net smelter return royalty interest derived from the Midas Gold Project. Completion of the Acquisition is subject to the approval of the TSX Venture Exchange (the "TSXV"). All securities issued pursuant to the terms of the Midas Agreement will be subject to a statutory hold period expiring four months and one day following the closing of the Acquisition.
Lorne Warner P.Geo., Director of MX Gold Corp., has reviewed and approved the technical aspects of this news release and is the qualified person as defined by National Instrument 43-101.



Private Placement

MX Gold Corp. is also pleased to announce a non-brokered private placement of up to 40,000,000 units (each, a "Unit") at a price of $0.10 per Unit for proceeds of up to $4,000,000. Each Unit is expected to consist of one Share and one transferable common share purchase warrant (each, a "Warrant"), with each Warrant expected to entitle the holder thereof to purchase one additional Share at a price of $0.20 per Share for a period of five years.

The securities described herein have not been registered under the United States Securities Act of 1933, as amended (the "U.S. Securities Act"), and may not be offered or sold in the United States or to, or for the account or benefit of, U.S. Persons (as defined in Regulation S under the U.S. Securities Act) absent registration or an applicable exemption from the registration requirements. This news release shall not constitute an offer to sell or a solicitation of an offer to buy nor shall there be any sale of the securities in any jurisdiction where such offer, solicitation, or sale would be unlawful.