Patagonia Gold PLC Acquisition of Calcatreu Deposit (5611D)
February 01 2018 - 1:00AM
UK Regulatory
TIDMPGD
RNS Number : 5611D
Patagonia Gold PLC
01 February 2018
Patagonia Gold Plc
("Patagonia Gold" or the "Company")
Acquisition of Calcatreu Deposit
Patagonia Gold Plc (AIM:PGD), the mining company with gold and
silver projects in the southern Patagonia region of Argentina,
Chile and Uruguay, is pleased to announce that on 31 January 2018
it completed the acquisition of the Calcatreu Deposit from Pan
American Silver Corp.
On 28 December 2017, the Company announced that it had entered
into a Definitive Agreement with Pan American Silver Corp to
acquire the Calcatreu Deposit for a total consideration of US$15
million. Patagonia Gold has made the initial payment of US$5
million with the balance of US$10 million due on 18 May 2018. As a
result of the transaction, Patagonia Gold, through a wholly owned
subsidiary, has acquired Minera Aquiline Argentina SA which owns
100% of the Calcatreu Deposit.
Commenting on the transaction, Christopher van Tienhoven
noted:
"We are pleased to have completed the purchase of the Calcatreu
project which adds a near one million ounce resource project to our
portfolio. We hope to receive the appropriate permits to commence
exploration work during the first quarter 2018. The Initial work
programme will be focussed on the area immediately surrounding the
existing orebody with the aim to increase the existing resource
size and advancing the project to feasibility study stage later in
2018."
About the Calcatreu Deposit
The Calcatreu Deposit is a high grade (2.325 g/t AuEq) low
sulphidation gold system with the mineralisation outcropping at
surface. An independent mineral resource estimate was completed by
Micon International Limited of Toronto in 2008 for the Calcatreu
Deposit, prepared in accordance with the Canadian National
Instrument 43-101 requirements and set out the current resource,
which contains 8 million tonnes at 3.04 g/t AuEq for 780,000 oz in
the Indicated category and a further 255,000 oz at 2.32 g/t AuEq in
the Inferred category. This resource model was completed in 2008
using a gold price of US$650/oz and a silver price of US$12.50/oz.
The surrounding land package has over 25,000 hectares of sparsely
explored terrain.
About Patagonia Gold
Patagonia Gold is a mining and exploration company with the
primary objective of increasing shareholder value through the
acquisition, exploration and development of gold and silver
projects in the Deseado Massif region of Argentina.
The Company holds, directly or indirectly through its
subsidiaries or under option agreements, the mineral rights to over
220 property interests in Argentina, Chile and Uruguay. These
include the mineral rights to 67 property interests in the province
of Santa Cruz covering approximately 190,000 hectares held by the
Company's 90%-owned Argentinian subsidiary, Patagonia Gold S.A. and
to 51 property interests covering approximately 156,000 hectares
held by its wholly owned Argentinian subsidiary Minera Minamalu
S.A.
For more information, please contact:
Christopher van Tienhoven, Chief Executive Officer
Patagonia Gold Plc
Tel: +54 11 5278 6950
Angela Hallett
Strand Hanson Limited
Tel: +44 (0)20 7409 3494
This information is provided by RNS
The company news service from the London Stock Exchange
END
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