Austral completes Pinguino sale
PERTH (miningweekly.com) – Junior Austral Gold has completed the sale of its Pinguino project, in Argentina.
Austral last year struck a deal with fellow-listed E2 Metals to divest of the project in a deal valued at $5-million.
On closing, Austral Canada received $2.5-million of a total of $5-million due over three years, with more than 49.7-million E2 shares also issued, equaling a 19.9% shareholding, as well as 15-million options of E2.
“We are pleased to announce the completion of the sale of Pinguino. The transaction resulted in the immediate cash injection of $2.5-million to partially fund the development of the heap reprocessing project at our flagship Guanaco-Amancaya mine complex in Chile,” said Austral CEO Stabro Kasaneva.
“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're main owners of 51% of the Sierra Blanca project, adjacent to Pinguino, and have an option to acquire the other 49% interest.”
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