- Austral Gold Limited (AGLD) has signed a share-sale agreement with E2 Metals Limited and Austral Gold Canada Limited
- Austral Canada has agreed to sell 100-per-cent of the common shares of SCRN Properties Limited to E2 for total consideration of US$~10 million
- Austral Gold Limited is a gold and silver explorer and mining producer operating in Chile, Argentina and the USA
- E2 Metals Limited is an Australian exploration company focused on making new discoveries in the Santa Cruz gold and silver province, southern Argentina
- Austral Gold Limited opened trading at C$0.04 per share
Austral Gold Limited (AGLD) has signed a share-sale agreement with E2 Metals Limited and Austral Gold Canada Limited.
In line with the agreement, Austral Canada has agreed to sell 100-per-cent of the common shares of SCRN Properties Limited to E2 for total consideration of US$~10 million.
SCRN’s main asset is the polymetallic Pinguino Project, located in the Deseado Massif in the Santa Cruz Province of Argentina.
Austral Gold Canada Limited is a Canadian subsidiary of Austral, while SCRN is a wholly-owned Canadian subsidiary of Austral Canada.
Under the terms of the agreement, E2 is to acquire SCRN for a combination of cash, shares and options, and upon completion, Austral Canada will become the largest individual shareholder of E2.
The consideration includes the payment of $5 million, issuance of E2 shares valued at worth at $4.4 million, and grant of 15 million options worth $0.6 million.
“We firmly believe in the Pinguino project., and this transaction with E2 Metals will enable us to share in the project’s potential upside and use the proceeds from the sale to fund our exploration activities in Argentina and Chile,” stated Austral Gold’s Chief Executive Officer, Stabro Kasaneva.
“In addition, E2 Metals’ flagship Conserrat project is close to Pinguino. Upon completion, we will become the largest shareholder in an ASX-listed company with a sound shareholder base and strong position in the mining-friendly Argentine province of Santa Cruz,” he added.
The Silver-Gold-Zinc-Lead-Indium Pingüino Project is an advanced-stage development project located in the south-central part of Argentina.
Austral Gold Limited is a gold and silver explorer and mining producer operating in Chile, Argentina and the USA.
E2 Metals Limited is an Australian exploration company focused on making new discoveries in the Santa Cruz gold and silver province, southern Argentina.
Austral Gold Limited opened trading at C$0.04 per share.