PATAGONIA GOLD ENTERS INTO A NEW AGREEMENT WITH FOMICRUZ
December 07 2021 - 8:31AM
Patagonia Gold Corp. (“Patagonia” or the “Company”) (TSXV: PGDC)
announces that it has entered into a new exploration and
exploitation agreement with the Provincial State-owned mining
company, Fomento Minero de Santa Cruz Sociedad del Estado
(“Fomicruz”) for certain properties in the Santa Cruz Province,
Argentina, pursuant to which it has granted a net smelter returns
royalty. The new agreement complements the corporate reorganization
whereby the Company’s subsidiaries, Patagonia Gold SA (“PGSA”) and
Cerro Cazador SA, merged and continued as one legal entity,
previously announced in January 2020. The new agreement is expected
to facilitate the development of an exploration program for the La
Josefina and La Valenciana gold and silver projects. In addition,
the agreement includes the option on a new property (the “Abril
Project”) located adjacent to the Martha mine and plant, which is
underexplored.
Highlights of this optimization include:
-
Executed a new exploration agreement with an exploitation option
with Fomicruz for the following three projects: the La Josefina
project, the La Valenciana project and the Abril Project (the
“Projects”).
-
Executed a net smelter returns royalty agreement, pursuant to which
Fomicruz is granted a 2% royalty on the mining properties that it
has already contributed to PGSA and on the Abril Project, with the
exception of the La Josefina project and the La Valenciana project,
where Fomicruz is granted a 5% royalty.
-
US$5,000,000 commitment to developing an exploration program for
the Projects during a 2-year period beginning once the
environmental permits for the exploration development of the
Projects are obtained.
-
Fomicruz reduced its interest in PGSA from 10% to 5% in accordance
with the restructuring announced in January 2020.
About Patagonia Gold
Patagonia Gold Corp. is a South America focused,
publicly traded mining company listed on the TSX Venture Exchange.
The Company seeks to grow shareholder value through exploration and
development of gold and silver projects in the Patagonia region of
Argentina. The Company is primarily focused on the Calcatreu
Project in Rio Negro and the development of the Cap-Oeste
underground project. Patagonia, indirectly through its subsidiaries
or under option agreements, has mineral rights to over 420
properties in several provinces of Argentina and Chile and is one
of the largest landholders in the province of Santa Cruz,
Argentina.
For more information, please
contact:Dean StuartT: 403 617 7609E:
dean@boardmarker.net
Christopher van Tienhoven, Chief Executive
OfficerPatagonia Gold CorpT: +54 11 5278 6950E:
cvantienhoven@patagoniagold.com
FORWARD-LOOKING STATEMENTS
This news release contains certain
forward-looking statements, including, but not limited to,
statements with respect to, among other things, the expectation
that the new exploration agreement will facilitate the development
of an exploration program for the La Josefina and La Valenciana
gold and silver projects, the US$5,000,000 commitment to developing
an exploration program for the Projects, advancement and
development of gold and silver projects in the Patagonia region of
Argentina and the anticipated growth in shareholder value. Wherever
possible, words such as “may”, “will”, “should”, “could”, “expect”,
“plan”, “intend”, “anticipate”, “believe”, “estimate”, “predict” or
“potential” or the negative or other variations of these words, or
similar words or phrases, have been used to identify these
forward-looking statements. These statements reflect management’s
current beliefs and are based on information currently available to
management as at the date hereof.
Forward-looking statements involve significant
risk, uncertainties and assumptions. Many factors could cause
actual results, performance or achievements to differ materially
from the results discussed or implied in the forward-looking
statements. These factors should be considered carefully, and
readers should not place undue reliance on the forward-looking
statements. Although the forward-looking statements contained in
this news release are based upon what management believes to be
reasonable assumptions, the Company cannot assure readers that
actual results will be consistent with these forward-looking
statements. These forward-looking statements are made as of the
date of this news release, and the Company assumes no obligation to
update or revise them to reflect new events or circumstances,
except as required by law.
Neither the TSX Venture Exchange nor its
Regulation Services Provider (as that term is defined in the
policies of the TSX Venture Exchange) accepts responsibility for
the adequacy or accuracy of this news release.
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