Patagonia GOLD First Quarter 2020 Financial Results
PATAGONIA GOLD FIRST QUARTER 2020 FINANCIAL RESULTS
July 14, 2020 Vancouver, BC. Patagonia Gold Corp. (“Patagonia” or the “Company”)
(TSXV: PGDC) is pleased to announce its unaudited re sults for the fiscal period ended
March 31, 2020 (“Q1 2020”). The financial statements together with the management’s
discussion and analysis (“MD&A”) are available on the Company’s website and on SEDAR
at www.sedar.com.
Highlights
Revenue of US $5.22 million and gross profit of US $2.77 million in Q1 2020.
Total production of 1,937 gold ounces and 41,377 silver ounces in Q1 2020.
Requested quotations for potential construction of underground mine at Cap-Oeste
gold / silver project and successfully completed bulk metallurgical tests at the Martha
process plant located 100 km south east of Cap-Oeste.
Received regulatory approval for Normal Course Issu er Bid to re-purchase up to
15,897,199 common shares.
Extended agreement with Latin Metals Inc. for the proposed acquisition of the Mina
Angela project. Definitive agreement expected to be signed by September 12, 2020.
Optimized and reduced costs for operations in Santa Cruz Province of Argentina
through the merger of subsidiaries Patagonia Gold S A (PGSA) and Cerro Cazador SA
(CCSA) into one legal entity and reduced provincial government interest to 5%.
Initiated RAB drill campaign and channel sampling program at Calcatreu gold / silver
project in Rio Negro province to test new geophysical targets, which are expected to
expand the existing mineral resources in ore shoots that remain open down-plunge.
Christopher van Tienhoven, CEO commented: “Patagonia continues to generate cash
flow from its residual heap leach operations at Lom ada and Cap-Oeste while remaining
focused on the development of, and ultimately putti ng Cap-Oeste into production with
processing at the Martha plant. Despite the COVID19 pandemic, the Company is using all
of its efforts to mitigate the effects on its operations and is working with stakeholders to
provide support as much as possible.”
In addition, in accordance with BC Instrument 51-516 - Temporary Exemptions from
Certain Requirements to File or Send Securityholder Materials of the British Columbia
Securities Commission, the Company has delayed the pu blic filing of its executive
compensation disclosure. The Company will file such disclosure in the management
information circular in respect of its next annual general meeting of shareholders.
Qualified Person’s Statement
Donald J. Birak, an independent geologist and Registered Member of SME and Fellow of
AusIMM, the qualified person as defined by National Instrument 43-101 has approved the
scientific and technical content of this press release.
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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
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 potential construction and
development to production of the Cap-Oeste undergro und project, the results of the
metallurgical tests at the Martha plant, the definitive agreement for the acquisition of the
Mina Angela project, the impact of the merger of Pa tagonia Gold SA (PGSA) and Cerro
Cazador SA, the anticipated results of the program at the Calcatreu gold / silver project,
advancement and development of gold and silver proj ects in the Patagonia region of
Argentina, anticipated growth in shareholder value, and the filing of the Company’s
executive compensation disclosure. Wherever possibl e, words such as “may”, “will”,
“should”, “could”, “expect”, “plan”, “intend”, “ant icipate”, “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 forwar d-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-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. These forward-looking statement s are made as of the date of this
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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 release.