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- Austral Gold’s (AGD) subsidiary, Austral Gold Argentina SA, has accepted a binding offer to enter a 50:50 joint venture contract with Mexplort
- Mexplort is an Argentinian company focused on the development of sustainable mining projects
- The agreement will see the companies work together to identify and develop new precious metal projects located in the Indio belt in the Province of San Juan, Argentina
- Mexplort will grant Austral Gold Argentina an earn-in option whereby it may acquire a 50 per cent interest in its Jaguelito project
- Shares closed 2.63 per cent higher today at 7.8 cents each
Austral Gold’s (AGD) subsidiary, Austral Gold Argentina SA, has accepted a binding offer to enter a 50:50 joint venture contract with Mexplort.
Mexplort is an Argentinian company focused on the development of sustainable mining projects.
The agreement will see the companies work together to identify and develop new precious metal projects located in the Indio belt in the Province of San Juan, Argentina.
Mexplort will grant Austral Gold Argentina an earn-in option whereby it may acquire a 50 per cent interest in its Jaguelito project.
The consideration for this project means Austral Gold Argentina will need to spend US$2 million (A$2.81 million) in exploration within two years in the first stage, including 5000 metres of drilling.
The second stage will require another US$2 million (A$2.81 million) for exploration within two years of completion of the first stage.
A payment of US$3 million (A$4.22 million) to Mexplort will be needed if the board of the JV company approves the construction of the project based on a bankable feasibility study.
During the term of the exploration period, an Exploration Committee will be created with two representatives from each country and chaired by an Austral appointee.
The primary exploration targets of Jaguelito are gold, silver, and other precious metals.
Austral Gold CEO Stabro Kasaneva said he believes the Jaguelito project presents a valuable opportunity.
“We are investing in the Jaguelito project as we believe the project has the potential to discover a high sulphidation deposit of the Alturas-Del Carmen or even Veladero type in Argentina,” he said.
“The Jaguelito project appears to have the same affected volcanic units that host a large zone of alteration having the same age based on evidence of mineralization of silver and gold intercepted in previous drilling campaigns.
“The deal also represents an opportunity for company’s sponsored by two of Argentina’s most prominent businessmen (Eduardo Eurnekian and Eduardo Elsztain) to create a new mining vehicle in the country.”
Shares closed 2.63 per cent higher today at 7.8 cents each.
