Patagonia Gold has expanded its footprint in Argentina by acquiring four new mineral concessions surrounding its Mina Angela project.
The deal was executed through Patagonia Gold’s Argentinean subsidiary, Huemules, which signed a definitive agreement with Compañía Inversora de Minas (Ciminas).
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The acquisition, totalling 15,494ha, brings the company’s mineral properties in the region to more than 52,000ha.
The newly acquired mineral properties, known as the Gastrenor Block, are situated in Chubut Province, where open-pit mining and the use of cyanide are currently prohibited.
The terms of the acquisition stipulate an initial payment of $100,000 (£76,546) to Ciminas, with a subsequent payment of $300,000 expected within 18 months, contingent on the authorisation of metal mining activities in the area.
The final payment is also subject to the condition that the legislation allowing such activities is not revoked.
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By GlobalDataAlternatively, the payment will be due 30 days after environmental permits are granted for mining operations on the Gastrenor Block, or upon its assignment to a third party, provided the assignee assumes the payment obligation.
In addition to the acquisition costs, Ciminas will receive a 1% net smelter return (NSR) royalty on future production from the entire property block, which includes both the Mina Angela project and the Gastrenor Block.
A third party is also entitled to a 0.25% NSR royalty.
The Mina Angela project was initially acquired by Patagonia Gold from Latin Metals in 2021.
Located in the Somuncura Massif of southern Argentina, the project comprises 44 individual mining claims over an area exceeding 200km², approximately 50km east-south-east of Patagonia Gold’s Calcatreu gold and silver development-stage project.
The acquisition of the Gastrenor Block from Ciminas allows Patagonia Gold to consolidate its holdings in the region, enhancing the potential for development.
Patagonia Gold CEO Christopher van Tienhoven said: “We believe that, through further exploration activities, followed by drilling, the combined property has enhanced potential for the discovery of a new precious and base metal mineral deposit.”
In April this year, Patagonia Gold completed the reacquisition of the COSE property from Pan American Silver.
