Mirasol Resources (TSXV: MRZ) has sold off certain of its Argentinian properties to that of Patagonia Gold (TSXV: PGDC). The arrangements will see two separate projects acquired by Patagonia in exchange for certain royalties and exploration and development commitments.
The first project to be acquired, the Homenaje project, will see a 75%/25% joint venture entered into between Patagonia and Mirasol, provided earn-ins are completed. The arrangement requires that Patagonia define a resource estimate of no less than 300,000 ounces of gold equivalent over a six year period, via at least $2.55 million in exploration expenditures over a set schedule. The property consists of 10,056 hectares, just 3 kilometres south of the Cap Oeste mine operated by Patagonia.
The second project, known as the Nico Project, is being sold in exchange for a 1.5% net smelter royalty. If production on the property does not begin within three years the company has the right to regain full ownership at no cost. The Nico project is located 45 kilometres north of the Mina Martha mine operated by Patagonia. The property is to be assessed for potential near-grade mineralization for processing at the firms Martha mill.
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Patagonia Gold last traded at $0.095 on the TSX Venture.
Information for this briefing was found via Sedar and the companies mentioned. The author has no securities or affiliations related to this organization. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.
