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Patagonia Gold Announces US$40 Million Investment Into Its Calcatreu Project
VANCOUVER, British Columbia, April 14, 2025 (GLOBE NEWSWIRE) -- Patagonia Gold Corp. (“ ...
About this update from Patagonia Gold Corp
[{"type":"text","content":"Patagonia Gold Announces US$40 Million Investment Into Its Calcatreu Project\n\n\n\n VANCOUVER, British Columbia, April 14, 2025 (GLOBE NEWSWIRE) -- Patagonia Gold Corp. (“\n \n Patagonia\n \n ” or the “\n \n Company\n \n ”) (TSXV: PGDC) is pleased to announce that, further to its news release dated March 14, 2025, it has entered into an investment agreement (the “\n \n Investment Agreement\n \n ”) with Black River Mine Inc. (the “\n \n Investor\n \n ”) through its wholly-owned subsidiary, Patagonia Gold Canada Inc. (“\n \n PG Canada\n \n ”), pursuant to which the Investor has agreed to invest up to US$40 million (the “\n \n Financing\n \n ”) to support the development of Patagonia’s flagship Calcatreu Project (the “\n \n Project\n \n ”) in Rio Negro, Argentina.\n \n\n Under the terms of the Investment Agreement, the Investor will acquire up to 40 million preferred shares (“\n \n Preferred Shares\n \n ”) of PG Canada, which holds the Project through Minera Calcatreu SAU (the “\n \n Operator\n \n ”). The Preferred Shares will be issued at a price of US$1.00 per share, resulting in total gross proceeds of US$40 million.\n \n\n\n Investment Structure and Governance\n \n\n\n The Investor is a newly formed corporation comprised of a consortium of investors and controlled by Carlos J. Miguens (the “\n \n Lead Investor\n \n ”). A copy of the Investment Agreement, including the form of shareholders’ agreement that will be entered into on closing of the Financing and govern the affairs of PG Canada (the “\n \n Shareholders’ Agreement\n \n ” and together with the Investment Agreement, the “\n \n Agreements\n \n ”), will be filed under the Company’s issuer profile on SEDAR+ at\n \n www.sedarplus.ca\n \n .\n \n\n The Agreements provide the Investor with certain rights, so long as it retains ownership of all of the Preferred Shares. These rights include:\n \n\n\n\n Board Representation\n \n : The ability to nominate one of the three directors of PG Canada.\n \n\n\n Future Investment Rights\n \n : The right to participate in new issuances of preferred shares or other equity securities by PG Canada, subject to the Agreements’ terms.\n \n\n\n Pr...