Business
Austral Gold Announces Acquisition of New Dimension Resources' Sierra Blanca Gold-silver Project in Argentina
Sydney, Australia--(Newsfile Corp. - April 1, 2020) - Austral Gold Limited (" Austral ") (ASX:...
About this update from Capella Minerals Limited
[{"type":"text","content":"Austral Gold Announces Acquisition of New Dimension Resources' Sierra Blanca Gold-silver Project in ArgentinaSydney, Australia--(Newsfile Corp. - April 1, 2020) - Austral Gold Limited (\"Austral\") (ASX: AGD) (TSXV: AGLD) and New Dimension Resources Ltd. (TSXV: NDR) (\"New Dimension\") are pleased to announce that they have entered into an agreement for Austral to purchase an 80% interest in New Dimension's Sierra Blanca gold-silver project (the \"Project\") in Santa Cruz Province, Argentina for US$800,000 in cash and work commitments, with a 'follow-on' option to purchase the remaining 20% interest for an additional US$2,300,000 in cash and work commitments as detailed below (the \"Transaction\"). The Transaction is subject to the successful completion of due diligence, execution of a definitive agreement and certain undertakings from New Dimension, and is expected to close on, or before, 30 April 2020.With this transaction, Austral will expand the area of its Pingüino project by securing an additional 7,000 hectares, resulting in a new exploration cluster in the Province of Santa Cruz. Figure 1: Sierra Blanca/Pinguino map To view an enhanced version of Figure 1, please visit:https://orders.newsfilecorp.com/files/690/54011_4bb27ccc34137b1d_004full.jpgHighlights of the transaction:Austral has agreed to purchase the first 80% interest in the New Dimension Argentine subsidiary that owns the Sierra Blanca project in two tranches through a combination of cash payments and project-level work commitments as follows: Tranche 1: Austral will acquire a 51% interest for US$100,000 in cash payments to New Dimension plus the expenditure of US$100,000 in work commitments at the project over the 12-month period following closing.Tranche 2: Austral will acquire an additional 29% interest for US$600,000 in work commitments on the project over the second and third years following closing (US$200,000 during the second year and US$400,000 during the third year).Austral has also agreed to pay up to US$10,000 per year towards the cost of maintaining the Sierra Blanca mining properties in good standing over the three-year term.Austral plans to fund the cost of the transaction from cash flow generated from operations.After it has acquired its 80% interest in the project, Austral will have the option to acquire the remaining 20% as follows:10% in ...