- Austral Gold Limited (TSXV:AGLD) and Pampa Metals Corporation (CSE:PM) have entered into a non-binding letter of intent
- Under the terms of the LOI, Austral may acquire up to an 80% interest in the Cerro Blanco and Morros Blancos properties held by Pampa
- The transaction will allow Austral Gold to obtain a leading role in the prolific Paleocene-Eocene Belt in Chile
- Austral expects the Transaction to close before the end of June
- Austral Gold Limited is a growing gold and silver mining, development and exploration company
- Pampa Metals, a publically traded Canadian company, owns eight projects in Chile
- Austral Gold Limited (AGLD) opened trading on the TSXV at C$0.165 per share
- Pampa Metals (PM) opened trading on the CSE at C$0.44 per share
Austral Gold Limited (AGLD) and Pampa Metals Corporation (PM) have entered into a non-binding letter of intent (“LOI”).
Under the terms of the LOI, Austral may acquire up to an 80% interest in the Cerro Blanco and Morros Blancos properties held by Pampa.
Austral Gold’s Chief Executive Officer Stabro Kasaneva said,
“Following our recent acquisition of Revelo Resources Corporation (“Revelo”), which included exploration projects located close to our Guanaco/Amancaya mining complex and a 19.9% shareholding interest in Pampa, we are pleased to enter into this LOI, which should enable us to further increase the number of projects that we own or control in the area. Our interest in this transaction is consistent with our strategy to obtain a leading role in the Paleocene-Eocene Belt in Chile which we believe is a prolific mineralized belt that is underexplored for precious metals.”
The transaction is subject to compliance with any requirements from the ASX and TSX Venture Exchange, execution of a definitive agreement and certain undertakings from Pampa, in addition to customary conditions precedent to be included in the Definitive Agreement.
Austral expects the Transaction to close before the end of June 2021.
Both the Cerro Blanco (6,500 Ha) and the Morros Blancos (7,300 Ha) Properties are prospective for porphyry copper (+/- gold +/- moly) and high-sulphidation epithermal gold-silver (+/- copper) deposits located in the heart of the Paleocene Mineral Belt in northern Chile.
Both projects are close to Austral’s Guanaco processing plant, which may allow for more efficient and cost-effective development and operation.
Austral Gold Limited is a growing gold and silver mining, development and exploration company building a portfolio of quality assets in Chile, the USA and Argentina.
Pampa Metals, a publically traded Canadian company, owns eight projects covering more than 59,000 hectares prospective for copper and gold located along proven mineral belts in Chile.
Austral Gold Limited (AGLD) opened trading on the TSXV at C$0.165 per share.
Pampa Metals (PM) opened trading on the CSE at C$0.44 per share.
