Aim-listed gold and silver miner Patagonia Gold has received the second and final payment of $7.5-million from Pan American Silver Corporation, with regards to the sale of the high-grade silver Cap-Oeste Sur Este (Cose) project, in Argentina.
The total consideration for the Cose transaction was $15-million and was first announced in April 2017.
Patagonia will use the $7.5-million for general working capital and to reduce its net debt position.
Patagonia will continue to operate the main Cose project where leaching continues and the agglomeration circuit is fully operational. Engineering design and the acquisition of a second crushing and mixing circuit have been completed with all major components in transit.
This crushing circuit is expected to be installed by the end of June, with commissioning in early July, to reprocess about 800 000 t of ore that was previously stacked before the agglomeration circuit was installed.