Closing of Debt Conversion
CLOSING OF DEBT CONVERSION
October 30, 2020 Vancouver, BC. Patagonia Gold Corp. (“Patagonia” or the “Company”)
(TSXV: PGDC) is pleased to announce the closing of the debt conversion transaction (the
“Debt Conversion”) previously announced on October 20, 2020. Pursuant to the Debt
Conversion, the Company converted an aggregate of US$10 million of outstanding debt
owed by the Company to Tim Hunt and his related parties and issued 44,040,277 common
shares (“Shares”) to a related party of Mr. Hunt (the “Acquiror”) at price of approximately
$0.30 per Share.
Early Warning Disclosure
As a result of the Debt Conversion, the Acquiror acquired beneficial ownership and control
and direction over a total of 44,040,277 Shares, wh ich represents 12.17% of the
outstanding Shares on an undiluted basis. Prior to the completion of the Debt Conversion,
Mr. Hunt and his related parties (which includes th e Acquiror) owned, directly and
indirectly, 53,653,625 Shares, representing 16.88% of the then outstanding Shares.
Accordingly, the Debt Conversion represents an increase in his ownership from 16.88% to
27% of the outstanding Shares on an undiluted basis . Mr. Hunt also holds 1,000,000
options of the Company exercisable into 1,000,000 Shares and which, when aggregated
with the Shares he holds, would represent a total o f 27.2% of the Shares on a partially
diluted basis. The acquisition of Shares in connection with the Debt Conversion was in the
ordinary course of business and for investment purposes. Mr. Hunt and/or the Acquiror
may increase or decrease their beneficial ownership of Shares or other securities of the
Company in accordance with applicable securities legislation. A copy of the Early Warning
Report in relation to the Debt Conversion can be ob tained from the Company (please
contact Matias Argarate at +54 11 5278 6950) or on the SEDAR profile of the Company at
www.sedar.com.
About Patagonia Gold
Patagonia Gold Corp. is a mining and development co mpany listed on the TSX Venture
Exchange. The Company seeks to grow shareholder val ue through exploration and
development of gold and silver projects in the Pata gonia region of Argentina. The
Company is primarily focused on the Calcatreu project in Rio Negro and the development
of the Cap-Oeste underground project. Patagonia, i ndirectly through its subsidiaries or
under option agreements, has mineral rights to over 365 properties in several provinces
of Argentina and Chile and is one of the largest landholders in the province of Santa Cruz,
Argentina.
For more information, please contact:
Dean Stuart
T: 403 617 7609
2
Christopher van Tienhoven
Chief Executive Officer
Neither the 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.