Business
Pampa Metals Signs Definitive Agreement with Austral Gold Returns 6% of Issued and Outstanding Shares Back to Treasury
VANCOUVER, BC / ACCESSWIRE / July 28, 2021 / Pampa Metals Corp. ("Pampa Metals" or the "Company") (CSE:PM) (FSE:FIRA) (OTCQX:PMMCF) is pleased to announce that
About this update from Andina Copper Corporation.
[{"type":"text","content":" VANCOUVER, BC / ACCESSWIRE / July 28, 2021 / Pampa Metals Corp. (\"Pampa Metals\" or the \"Company\") (CSE:PM) (FSE:FIRA) (OTCQX:PMMCF) is pleased to announce that further to the news release of April 14, 2021 it has completed the formal documentation with Austral Gold Ltd. (\"Austral\") (TSXV:AGLD) (ASX:AGD), whereby Austral has been granted an option to acquire in stages up to an 80% joint venture interest in Pampa Metals' Cerro Blanco and Morros Blancos properties (the \"Properties\") in exchange for certain cash payments, exploration expenditures and the cancellation of 2,963,132 shares of Pampa Metals held by Austral's wholly-owned subsidiary, Revelo Resources Corp. The formal documentation (the \"Agreement\") consists of the Definitive Option and Joint Venture Agreement, a Shareholders' Agreement in the event the Option is exercised, and an Exploration Deed that enables enforcement of the Agreement in Chile. Highlights of the Agreement are: Cancelation of 2,963,132 of the Company's shares representing the return to treasury of more than 6% of the issued and outstanding share capital; Austral incurring Exploration Expenditures of at least $1 million in year 1 and $2 million in year 2; Austral being required to complete a bankable feasibility study to earn an 80% interest in either or both properties. If studies indicate that copper is the most valuable commodity instead of gold and silver, Pampa Metals can earn back an 80% interest under the same terms and conditions as those for Austral. Julian Bavin, CEO of Pampa Metals, commented: \"We are extremely pleased to have signed this Agreement with Austral, which brings great experience in gold exploration to our Cerro Blanco and Morros Blancos Properties. Through this transaction we are also returning to our treasury a significant number of shares that will better position the Company when additional capital is required. The transaction also ensures that more projects within Pampa Metals' portfolio will be advanced rapidly and efficiently, allowing the Company to direct its treasury towards other projects within its 100% owned portfolio.\" And he continued: \"In addition, the close proximity of our Cerro Blanco and Morros Blancos projects to Austral's operating mines and processing operations in Chile provide enhanced optionality to Pampa Metals and, subject to exploration an...