Patagonia GOLD Enters into a New Agreement with Fomicruz
PATAGONIA GOLD ENTERS INTO A NEW AGREEMENT WITH FOMICRUZ
December 7, 2021 Vancouver, BC. Patagonia Gold Corp. (“Patagonia” or the “Company”)
(TSXV: PGDC) announces that it has entered into a new exploration and exploitation
agreement with the Provincial State-owned mining company, Fomento Minero de Santa
Cruz Sociedad del Estado (“Fomicruz”) for certain properties in the Santa Cruz Province,
Argentina, pursuant to which it has granted a net smelter returns royalty. The new
agreement complements the corporate reorganization whereby the Company’s
subsidiaries, Patagonia Gold SA (“PGSA”) and Cerro Cazador SA, merged and continued as
one legal entity, previously announced in January 2020. The new agreement is expected
to facilitate the development of an exploration program for the La Josefina and La
Valenciana gold and silver projects. In addition, the agreement includes the option on a
new property (the “Abril Project”) located adjacent to the Martha mine and plant, which
is underexplored.
Highlights of this optimization include:
Executed a new exploration agreement with an exploitation option with Fomicruz
for the following three projects: the La Josefina project, the La Valenciana project
and the Abril Project (the “Projects”).
Executed a net smelter returns royalty agreement, pursuant to which Fomicruz is
granted a 2% royalty on the mining properties that it has already contributed to
PGSA and on the Abril Project, with the exception of the La Josefina project and
the La Valenciana project, where Fomicruz is granted a 5% royalty.
US$5,000,000 commitment to developing an exploration program for the Projects
during a 2-year period beginning once the environmental permits for the
exploration development of the Projects are obtained.
Fomicruz reduced its interest in PGSA from 10% to 5% in accordance with the
restructuring announced in January 2020.
About Patagonia Gold
Patagonia Gold Corp. is a South America focused, publicly traded mining company listed
on the TSX Venture Exchange. The Company seeks to grow shareholder value through
exploration and development of gold and silver projects in the Patagonia 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, indirectly through
its subsidiaries or under option agreements, has mineral rights to over 420 properties in
several provinces of Argentina and Chile and is one of the largest landholders in the
province of Santa Cruz, Argentina.
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For more information, please contact:
Dean Stuart
T: 403 617 7609
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, statements with respect to, among other things, the expectation that the new
exploration agreement will facilitate the development of an exploration program for the
La Josefina and La Valenciana gold and silver projects, the US$5,000,000 commitment to
developing an exploration program for the Projects, advancement and development of
gold and silver projects in the Patagonia region of Argentina and the anticipated growth
in shareholder value. Wherever possible, words 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 statements. These statements reflect
management’s current beliefs and are based on information 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-looking statements. These factors should
be considered carefully, and readers should not place undue reliance on the forward-
looking statements. Although the forward-looking statements 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. These forward-looking statements are made as of the date of this
news release, and the Company assumes no obligation 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 news release.