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Energy

Rose Petroleum pockets US$100,000 as Magellan Gold asks for more time to consider purchase of San Dieguito de Arriba milling operations

The $100,000 is non-refundable, but will be deducted from the final purchase price should Magellan opt to buy the operations

Shares in Rose Petroleum PLC (LON:ROSE) nudged higher after it trousered US$100,000 for an extension of an option agreement over its Mexican milling operations.

The natural resources business said Magellan Gold Corporation had paid it the money to secure another 60 days to mull over whether to buy Rose’s mineral processing mill operation in San Dieguito de Arriba (SDA), in the state of Nayarit, Mexico.

READ Rose Petroleum's mill disposal will boost its US oil aspirations

The additional US$100,000 will be credited against the final purchase price should the sale proceed.

The total purchase price for the SDA Mill is US$1.5 million, of which US$1mln will be in cash with the rest in restricted common stock in Magellan.

Shares in Rose were up 0.7% at 0.126p in the first half hour of trading.

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