On October 10, 2024, Patagonia Gold Corp (“Patagonia Gold”) announced the acquisition of certain mining properties, which comprise the “Gastrenor” project located in the Province of Chubut, Argentina, from Compañía Inversora de Minas S.A.U. (“CIMINAS") (the ‘Transaction’).
Under the terms of the Transaction, Patagonia Gold paid CIMINAS an initial sum, to which a subsequent higher payment may be added if certain conditions are met, mainly related to a potential legalization of metal mining activity in the Province of Chubut. In addition, CIMINAS received as additional consideration a right to a royalty on any future mining exploitation carried out on the properties comprising the “Gastrenor” project.
The Transaction additionally involved the renegotiation between CIMINAS, Patagonia Gold and Minsud Argentina Inc. of certain royalties on the exploitation of mining properties located in the provinces of Chubut, Río Negro and Santa Cruz, Argentina.
Deal counsel:
PAGBAM advised CIMINAS led by P. Eugenio Aramburu together with associates F. Nicanor Berola, Marcos Vieito, and paralegal Abril Torres.
Leverone Abogados advised Minsud Argentina Inc., led by Lucio Leverone and Bautista Etchebarne.
Patagonia Gold was advised by in-house counsel Matías Argarate, manager of legal affairs.
