Austral Gold Completes Sale of Pinguino for US$~10M HIGHLIGHTS
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Austral completes strategic sale of the Pinguino project
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Consideration: Cash of US$5M, 19.99% of E2 Metals' shares plus 15M E2 Metal options
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Austral becomes the largest shareholder of E2 Metals
Sydney, Australia--(Newsfile Corp. - March 1, 2023) - Austral Gold Limited (ASX: AGD) (TSXV: AGLD) ("Austral") is pleased to announce the completion of the previously announced agreement to sell 100% of the common shares of SCRN Properties Limited ("SCRN") from Austral Gold Canada Limited ("Austral Canada") to E2 Metals Limited ("E2") (ASX: E2M).
On closing, Austral Canada received US$2.5M of a total of US$5.0M due over three years, 49,751,970 shares of E2, which is equal to 19.9% shareholding and 15M options of E2.
The US$2.5M in deferred cash payments (please refer to Highlights of Consideration) has been secured by a share mortgage over 51% of SCRN's common shares until the second cash installment is paid, at which time the share mortgage is to be reduced to 19%.
SCRN's main asset is the polymetallic Pinguino Project, located in the Deseado Massif in the Santa Cruz Province of Argentina (please refer to About Pinguino).
Austral Gold's Chief Executive Officer, Stabro Kasaneva said: "We are pleased to announce the completion of the sale of Pinguino. The transaction resulted in the immediate cash injection of US$2.5M to partially fund the development of the Heap Reprocessing project at our flagship Guanaco-Amancaya mine complex in Chile. In addition, with our 19.9% interest in E2 Metals, we retain exposure to the Pinguino project in the province of Santa Cruz, Argentina which hosts numerous intermediate and large mining producers. In addition, we remain owners of 51% of the Sierra Blanca project, adjacent to Pinguino, and have an option to acquire the other 49% interest."
Austral Gold Completes Sale of Pinguino for US$~10M (newsfilecorp.com)