- Austral Gold (AGD) has agreed to purchase 80 per cent of New Dimension Resources’ Sierra Blanca gold-silver project in Argentina
- The company will pay US$800,000 for the interest
- However, it will have the option to purchase the remaining 20 per cent for an additional US$2.3 million
- This transaction is subject to a number of conditions including completing due diligence
- This is expected by the end of the month
- Austral is up 4 per cent on market close, selling shares for 13¢ each
Austral Gold (AGD) has agreed to purchase 80 per cent of New Dimension Resources’ Sierra Blanca gold-silver project in Argentina.
The company will pay US$800,000 (approx A$1.3 million), however, it will have the option to purchase the remaining 20 per cent for an additional US$2.3 million (nearly A$4 million) and work commitments.
This transaction is subject to a number of conditions such as the completion of due diligence, which is expected to be completed at the end of April.
Austral will expand the area of its Pingüino project by securing an additional 7000 hectares. This presents the opportunity for a new exploration area in the Province of Santa Cruz.
The agreement will be over a three year period, in which Austral has agreed to pay up to US$10,000 (around A$16,400) per year towards the project.
Austral CEO Stabro Kasaneva is pleased to have this opportunity to purchase the Sierra Blanca gold-silver project and sees a strong union between the Sierra Blanca project and the Pingüino project.
“Both projects are located in the geological zone of Deseado Massif in the Santa Cruz Province, one of the most prominent precious metal regions in the world,” he said.
“We expect that the acquisition of Sierra Blanca will enable us to increase the value of our Pingüino project by drilling additional targets that can potentially increase our mineral resource base in this region,” he added.
Austral is up 4 per cent on market close, selling shares for 13¢ each.