Patagonia Gold in Argentina joint-venture
Patagonia Gold has formed a strategic alliance with a government-owned company to develop Patagonia's mining properties in the province of Santa Cruz, Argentina.
Patagonia Gold's subsidiary, Patagonia Hold SA (PGSA,) will own a 90% stake in a new company with the remaining 10% owned by Fomicruz SE, a mining company wholly owned by the government of Santa Cruz province.
PGSA and Fomicruz will each hand over 100,000 hectares of their mining properties in Santa Cruz to the joint-venture.
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Additionally PGSA will invest U$5m over a five year period on exploration activities on the properties contributed by Fomicruz, and will fund all the exploration expenditures of the joint-venture's properties to the pre-feasibility stage, after which development costs will be funded on a pro-rata basis.
The land contributed by Fomicruz is located in the Deseado Massif, close to existing PGSA properties.
"This agreement allows PGSA to significantly expand its land position in the Deseado Massif and we are confident of our ability to apply our proven experience in identifying high grade gold and silver deposits on the Fomicruz SE properties," said Patagonia Gold's deputy chairman, Carlos Miguens.
