Patagonia Gold signs $40m investment deal for Argentina project

GlobalData

Tue, Apr 15, 2025, 3:43 AM 2 min read

Patagonia Gold has signed an concern statement with Black River Mine, nether which the second volition supply up to $40m (£30.21m) to enactment the improvement of the company’s Calcatreu golden task successful Rio Negro, Argentina.

Black River Mine is simply a recently formed entity led by Argentine businessman Carlos J Miguens, a shareholder successful Patagonia Gold, and comprises a consortium of investors.

The backing volition beryllium facilitated done Patagonia Gold’s wholly owned subsidiary, Patagonia Gold Canada (PG Canada).

Under the agreement, Black River Mine volition acquisition up to 40 cardinal preferred shares of PG Canada astatine a terms of $1 per share.

Upon acquiring the afloat allotment of preferred shares, Black River Mine volition clasp 40% of PG Canada, with Patagonia retaining a controlling 60% interest.

Furthermore, arsenic portion of the agreement, Black River Mine volition beryllium entitled to nominate 1 of 3 directors to PG Canada’s committee and volition besides person information rights successful aboriginal equity issuances by PG Canada, taxable to the presumption of the agreement.

The financing is taxable to customary closing conditions including shareholder support and last clearance from the TSX Venture Exchange.

The gross proceeds from the transaction volition beryllium utilized by Patagonia exclusively for the improvement of the Calcatreu Project and to screen related financing expenses.

Located adjacent the confederate borderline of Rio Negro Province, the Calcatreu Project was acquired by Patagonia Gold from Pan American Silver successful 2018.

As per the estimates, the task contains 746,000 golden equivalent ounces successful the measured and indicated assets class and 390,000oz successful the inferred category.

In October 2024, Patagonia Gold acquired 4 caller mineral concessions surrounding its Mina Angela task successful Argentina.