Austral Gold Announces Completion of the Purchase of the San Guillermo and Reprado Projects, Northern Chile
Austral Gold Announces Completion of the Purchase of
the San Guillermo and Reprado Projects, Northern Chile
Vancouver, British Columbia--(Newsfile Corp. - November 14, 2017) - Austral Gold Limited (ASX: AGD) (TSXV: AGLD) (the
"
C
ompan
y"
or
"Austral"
) is pleased to announce that it has completed its purchase of a 100% interest in the San Guillermo
and Reprado gold-silver projects from Revelo Resources Corp. (
"Revelo"
) — (TSX-V: RVL).
Both projects are located in the
emerging Amancaya precious metals district of northern Chile, as previously announced (see Company's news release dated
July 17, 2017).
The purchase price for these two projects consisted of an aggregate of 10,000,000 Austral common shares, and Revelo has
retained Net Smelter Return (NSR) Royalties on future metals production of 1% and 0.5% at Reprado and San Guillermo,
respectively. Based on AGD share price at market close on Friday 10
th
that is equivalent to approximately $1.55 million
Australian dollars in shares.
The existing Option, Sale and Royalty Agreement between Revelo and Austral relating to the San Guillermo project (see the
Company's news release dated February 8, 2016) has now been cancelled.
Austral has assumed responsibility for paying
underlying NSR production royalties at San Guillermo and Reprado.
"With the recent discovery of gold mineralisation on the 2.8km long Nueva vein within our Amancaya project, the consolidation of
the surrounding San Guillermo and Reprado properties represents another strategic asset acquisition in close proximity to our
operating mine" stated Stabro Kasaneva, CEO of Austral Gold.
"These projects are within 70km trucking distance of the
agitation leach plant at Guanaco, which increases the possibility that any discovery would add value to our portfolio of
properties."
The properties extend the Company's land package along strike of the north south trending mineralized vein system discovered
to date at Amancaya (the producing Central vein and the Nueva vein discovery). Historical drilling has identified vein hosted gold
mineralisation on both properties and the company expects to advance exploration activities in the near future.
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Qualified Persons
The scientific and technical content of this news release has been prepared by, or under the supervision of Michael Brown,
MAIG, and has been reviewed and approved by him. Mr Brown is a Geologist and Member of Australian Institute of
GeoScientists and an employee of Austral Gold Limited. Mr. Brown is a "qualified person" for the purposes of National
Instrument 43-101,
Standards of Disclosure for Mineral Projects
.
About Austral Gold
Austral Gold Limited is a growing precious metals mining, development and exploration company building a portfolio of
quality assets in Chile and Argentina. The Company's flagship Guanaco
mine
in Chile is
operated with the Amancaya mine
with processing of ore from both mines at a new agitation leach plant at Guanaco. There is significant
exploration upside
at
and around both operations, with a new vein discovery at Amancaya
.
The Company
also
owns 70% and is
operator of the
underground silver-gold Casposo mine in San Juan, Argentina. With an experienced local technical team and highly
regarded major shareholder, Austral's goal is to continue to strengthen its asset base through acquisition and discovery.
Austral Gold Limited is listed on the TSX Venture Exchange (TSXV: AGLD), and the Australian Securities Exchange (ASX:
AGD). For more information, please consult the company's website
:
www.australgold.com
Neither 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
release.
On behalf of Austral Gold Limited:
"Stabro Kasaneva"
CEO
For Further Information Please Contact:
Mike Brown, VP Corporate Development
Canada: +1 604 568 2496
Argentina: + 54 11 4323 7558
Forward Looking Statements
Statements in this news release that are not historical facts are forward-looking statements. Forward-looking statements are
statements that are not historical, and consist primarily of projections - statements regarding future plans, expectations and
developments. Words such as "expects", "intends", "plans", "may", "could", "potential", "should", "anticipates", "likely",
"believes" and words of similar import tend to identify forward-looking statements. Forward-looking statements in this news
release include the possibility that any discovery at San Guillermo or Reprado would add value to the Company's portfolio of
properties and the expectation to advance exploration activities in the near future on both these properties.
All of these forward-
looking statements are subject to a variety of known and unknown risks, uncertainties and other factors that could cause actual
events or results to differ from those expressed or implied, including, without limitation, business integration risks; uncertainty of
discovery and production, development plans and cost estimates, commodity price fluctuations; political or economic instability
and regulatory changes; currency fluctuations, the state of the capital markets, uncertainty in the measurement of mineral
reserves and resource estimates, the Company's ability to attract and retain qualified personnel and management, potential
labour unrest, reclamation and closure requirements for mineral properties; unpredictable risks and hazards related to the
development and operation of a mine or mineral property that are beyond the Company's control, the availability of capital to
fund all of the Company's projects and other risks and uncertainties identified under the heading "Risk Factors" in the
Company's continuous disclosure documents filed on SEDAR. You are cautioned that the foregoing list is not exhaustive of all
factors and assumptions which may have been used. The Company cannot assure you that actual events, performance or results
will be consistent with these forward-looking statements, and management's assumptions may prove to be incorrect. The
Company's forward-looking statements reflect current expectations regarding future events and operating performance and
speak only as of the date hereof and the Company does not assume any obligation to update forward-looking statements if
circumstances or management's beliefs, expectations or opinions should change other than as required by applicable law. For
the reasons set forth above, you should not place undue reliance on forward-looking statements.