History
Mexus Gold US grew from a shell into a Sonora gold explorer, lost partners Argonaut and MarMar, and by October 2018 ran Santa Elena itself, funded by a small convertible note.
2009-2010: From shell to Mexican gold explorer
The company began as Action Fashions, Ltd. In August 2009 it issued 42,500,000 shares to Tarus Gold, owned by sole officer and director Paul D. Thompson, on conversion of an $85,000 note. In September former majority holder Phillip Koehnke returned 129,025,000 shares to treasury for partial debt repayment, leaving Tarus Gold with 84%.
Renamed Mexus Gold US, the company moved quickly to build a portfolio. In October 2009 it paid 250,000 restricted shares for an option on mining claims in Esmeralda County, Nevada, which would cost $5,000,000 to exercise. It also took an option to acquire 99% of Mexus Gold Mining, S.A. de C.V., which claims land and equipment in Sonora, Mexico, paying 20 million restricted shares in November 2009 and a further 20 million in February 2010 to complete the share payments. In December 2009 it agreed to buy mining equipment from the related company Mexus Gold International, Inc. for 40,000,000 restricted shares, which diluted existing holders.
In July 2010 it signed two further deals. One was a Project Management Agreement with Powercom Services, Inc. to fund recovery of undersea cable in Alaskan waters. The other was an agreement to fund Mexus Gold Mining so it could start mining in Sonora, in return for 75% of mining revenues after costs.
2011-2014: Alaska ends, San Felix is sold
The record is quiet for most of this period. Shares on issue rose from 167,860,620 at the end of 2011 to 276,840,567 at the end of 2014, though the beats do not explain the increase. In September 2012 the company ended the Powercom agreement, saying the terms no longer worked for both sides, and agreed to issue Powercom 1,000,000 restricted shares for a release and indemnification.
In March 2014 the company and Mexus Gold Mining agreed to sell Mexus Enterprises S.A. de C.V., the Mexican entity that owned the San Felix Project, to First Pursuit Silver de Mexico for $5,000,000. The price included assumed debt, $200,000 cash to a creditor, $332,000 in Silver Pursuit Resources shares and $4,000,000 cash due by March 2015. Mexus kept a 50% security interest until paid in full.
2015-2018: Partners come and go
In July 2015 Argonaut Gold's subsidiary took an option on the Caborca concessions in Sonora, paying $75,000 and committing to spend at least $300,000 by the end of 2015. By December Argonaut had walked away, citing gold-price uncertainty and the $5,000,000 spending obligation. It had spent about $500,000 on 16 drill holes. Thompson said he was talking to other possible partners.
In May 2016 Marmar Holding SA de C.V. signed a joint venture on the same Santa Elena and Marta Elena concessions, to provide operations, equipment and funding. In January 2017 Mexus agreed to buy a 50% interest in the San Felix site, about 26,000 acres near Caborca, for a total of US$2,000,000 with Mexus responsible for half. The filing does not say how this relates to the earlier sale to First Pursuit.
Shares on issue climbed from 454,981,927 at the end of 2015 to 937,359,249 at the end of 2018, though the beats do not detail the raisings behind this.
In April 2018 Mexus ended the Marmar venture, saying Marmar failed to provide agreed funding, equipment and operations, and that only 8.5 oz of gold had been produced in 22 months. Mexus said it would run Santa Elena itself at 500 tons a day and promised a non-dilutive capital raise plan. On October 12, 2018 it closed a $200,000 convertible note at 6%, maturing in 12 months and convertible at $0.006666667 per share, with at least 30,000,000 shares reserved. Conversion would add new shares. At that date Mexus was operating Santa Elena itself and was still looking for a new partner for it.
Written from the 15 story beats below (2009 to 18 Oct 2018), which come from the company's own announcements and filings.