Patagonia Gold Corp. announced that it has entered into an investment agreement with Black River Mine Inc. through its wholly-owned subsidiary, Patagonia Gold Canada Inc., pursuant to which the Investor has agreed to invest up to US$40 million to support the development of the Calcatreu Project, located in in Rio Negro province.
By Panorama Minero
Under the terms of the Investment Agreement, Black River Mine Inc. will acquire up to 40 million preferred shares of Patagonia Gold Canada, which holds the Project through Minera Calcatreu SAU. The Preferred Shares will be issued at a price of US$1.00 per share, resulting in total gross proceeds of US$40 million.
Proceeds from the Financing will be used solely for funding the development of the Project and to pay fees and expenses incurred by the Company in connection with the Financing.
Calcatreu is Patagonia Gold’s flagship project located near the southern border of Rio Negro, approximately 85 kilometres south of the town of Ing Jacobacci.
The Company acquired the Project from Pan American Silver in 2018 and since then has been dedicated to obtaining the permits to advance the Project to production. In November 2024, the Company was notified by the local Provincial authorities that the final permit to proceed with construction and development of the Project had been granted.
The Project has approximately 746,000 contained AuEq (gold equivalent) ounces of measured and indicated mineral resource category and 390,000 contained AuEq ounces of Inferred Mineral Resources.
