Patagonia Enters into Definitive Option Agreement to Acquire the Mina Angela Property
Patagonia Enters into Definitive Option Agreement to Acquire the
Mina Angela Property
September 15, 2020 Vancouver, B.C. Patagonia Gold C orp. (“Patagonia” or the
“Company”) (TSXV: PGDC) announces the Company has sig ned a definitive option
agreement (the “Definitive Agreement”) with Latin M etals Inc. (“Latin Metals”), which
grants Patagonia an irrevocable option to acquire a 100% interest in the Mina Angela
property. The Mina Angela property is situated in t he Somuncura Massif of southern
Argentina and is comprised of 44 individual mining claims. It covers 200 km² and is located
approximately 50 km east-southeast of Patagonia’s 100% owned Calcatreu gold project.
In March 2020, Patagonia extended the period by which it must enter into the Definitive
Agreement with a US$100,000 payment to Latin Metals; US$50,000 of which was applied
to extend the period to enter into the Definitive Agreement and US$50,000 of which was
a partial prepayment of the first earn-in payment t o be made under the Definitive
Agreement.
Upon signing the Definitive Agreement, Patagonia pa id US$200,000 to Latin Metals
representing the balance of the first earn-in payme nt. It is expected that Patagonia will
pay the second earn-in payment of US$250,000 within the next six months if it exercises
the option to acquire the Mina Angela property. A f urther, and final payment of
US$500,000 is expected to be paid within 30 days of verification that the legal restrictions
preventing development of mining activity in the Chubut Province and at the Mina Angela
property have been lifted in such a manner that Pat agonia thereafter has the ability to
perform exploration and exploitation mining activit ies on Mina Angela property . In
addition, Latin Metals will be entitled to receive a 1.25% NSR from future production, half
of which can be repurchased by Patagonia for US$1 million.
About Patagonia Gold
Patagonia Gold Corp. is a mining and development com pany 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 360 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
Patagonia Gold Corp
T: +54 11 5278 6950
FORWARD-LOOKING STATEMENTS
This news release contains certain forward-looking statements, including, but not limited
to, expectations as to the acquisition of a 100% in terest in the Mina Angela property,
expectations as to future payments under the Defini tive Agreement and the Company’s
future plans and intentions. Wherever possible, wor ds such as “may”, “will”, “should”,
“could”, “expect”, “plan”, “intend”, “anticipate”, “believe”, “estimate”, “predict” or
“potential” or the negative or other variations of these words, or similar words or phrases,
have been used to identify these forward-looking st atements. These statements reflect
management’s current beliefs and are based on infor mation currently available to
management as at the date hereof.
Forward-looking statements involve significant risk, uncertainties and assumptions. Many
factors could cause actual results, performance or achievements to differ materially from
the results discussed or implied in the forward-loo king statements. These factors should
be considered carefully and readers should not plac e undue reliance on the forward-
looking statements. Although the forward-looking st atements contained in this news
release are based upon what management believes to be reasonable assumptions, the
Company cannot assure readers that actual results will be consistent with these forward-
looking statements. The Company assumes no obligati on to update or revise them to
reflect new events or circumstances, except as required by law.
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.