Patagonia Gold Announces Completion of US$40 Million Investment Into Its Calcatreu Project

Core Viewpoint - Patagonia Gold Corp. has successfully completed a US$40 million investment from Black River Mine Inc. for the development of its Calcatreu project in Argentina [1][2]. Financing Details - The investment, referred to as the Calcatreu Financing, involved the issuance of 40 million preferred shares at a price of US$1.00 per share [1]. - Proceeds from the financing will be exclusively used for the development of the Calcatreu project and related expenses [2]. - No finder's fee was paid in connection with the financing, and the preferred shares are non-voting with transfer restrictions [3]. Related Party Transaction - Black River, controlled by Carlos J. Miguens, is considered a related party, owning 43.2% of Patagonia's common shares [4]. - The financing was classified as a "related party transaction" under Multilateral Instrument 61-101, requiring shareholder approval, which was obtained at a special meeting held on May 20, 2025 [4]. Project Overview - The Calcatreu project is located in Rio Negro province, approximately 85 kilometers south of Ing Jacobacci [5]. - Patagonia acquired the project from Pan American Silver in 2018 and has since been focused on obtaining necessary permits for development [6]. - The project has an estimated 746,000 contained AuEq ounces in measured and indicated resources and 390,000 contained AuEq ounces in inferred resources [7]. Technical Information - The scientific and technical information in the news release has been reviewed and approved by Donald J. Birak, a qualified person as defined by National Instrument 43-101 [8]. - Additional details about the project and mineral resources are available in the technical report dated December 31, 2018 [9]. Company Background - Patagonia Gold Corp. is a publicly traded mining company focused on gold and silver projects in South America, primarily the Calcatreu project and the Cap-Oeste underground project [10][11].