Magna Gold Obtains Initial Order under Companies' Creditors Arrangement Act (Canada)

TORONTO, March 27, 2023 /PRNewswire/ - Magna Gold Corp. (NEX:MGR.H) (OTCPINK:MGLQF) ("Magna Gold", and together with its direct and indirect subsidiaries, "Magna" or the "Company") announces that it was granted an initial order (the "Initial Order") pursuant to the Companies' Creditors Arrangement Act (the "CCAA") by the Ontario Superior Court of Justice (Commercial List) (the "Court") on application by Magna Gold seeking court protection from its creditors to allow it to restructure its business and property as a going concern. The Initial Order, among other things, (i) provides for a stay of all proceedings in favour of Magna Gold, staying creditors from enforcing their claims until April 4, 2023 (which date can be extended by further Order of the Court); (ii) continues, under the CCAA, the proceedings under the Bankruptcy and Insolvency Act, R.S.C. 1985, c. B-3, as amended (the "BIA"), commenced by Magna Gold pursuant to a Notice of Intention to Make a Proposal (the "NOI") filed on March 3, 2023; (iii) authorizes the decision by Magna Gold to incur no further expenses in relation to any filings and disclosures that may be required by any federal, provincial or other laws respecting securities or capital markets in Canada or the United States; and (iv) relieves Magna Gold of any obligation to call and hold its annual general meeting of shareholders until further Order of the Court.