Patagonia Gold Secures Increased Loan Facility
Patagonia Gold Corp. (“Patagonia”) (TSXV: PGDC) has recently made strides in enhancing its financial foundation by entering into a significant agreement with Cantomi Capital Ltd. ("Cantomi"). This new arrangement allows Patagonia to amplify its access to essential funding, raising the maximum loan amount from US$15 million to an impressive US$45 million.
Details of the Loan Expansion
The original loan facility, initiated in early 2019, was designed to support Patagonia’s operational and developmental needs. However, with the increasing demands associated with the Calcatreu project, the necessity for further financial support became evident. The funds secured from this expanded loan will primarily focus on the advance payments for long lead time items crucial for the development of the Calcatreu project and to maintain general working capital.
Loan Terms and Implications
Under this newly amended agreement, while the loan amount has significantly increased, other terms of the Cantomi Loan remain unchanged. The maturity date for the loan is set for December 31, 2026, providing the company with ample time to utilize these funds effectively.
About Patagonia Gold Corp.
Patagonia Gold is an active mining entity based in South America, recognized for its commitment to exploring and developing gold and silver projects in the Patagonia region of Argentina. The company is strategically focused on the Calcatreu project located in Rio Negro, as well as the underground development at the Cap-Oeste project. Additionally, Patagonia Gold boasts mineral rights to over 415 properties spread across multiple provinces in Argentina, establishing it as one of the most significant landholders within the province of Santa Cruz.
Future Prospects in the Mining Sector
Looking ahead, the company aims to leverage the increased funding to not only enhance the development lifecycle of its projects but also to explore new opportunities within the mining sector in Argentina. By continuing to secure favorable financing arrangements, Patagonia Gold is positioning itself for sustainable growth and long-term success.
Contact Information
For further details, interested parties can reach out to Christopher van Tienhoven, Chief Executive Officer at Patagonia Gold Corp., by phone at +54 11 5278 6950, or via email at cvantienhoven@patagoniagold.com.
Frequently Asked Questions
What is the purpose of the increased loan amount?
The increased loan amount will primarily be used for downpayments on essential items for the Calcatreu project and general working capital.
When is the maturity date for the loan?
The maturity date for the increased Cantomi Loan is set for December 31, 2026.
What projects is Patagonia Gold currently focused on?
The company is primarily focused on the Calcatreu project in Rio Negro and the Cap-Oeste underground project.
How many properties does Patagonia Gold hold rights to?
Patagonia Gold holds mineral rights to over 415 properties across various provinces in Argentina.
Who can be contacted for more information about the company?
Christopher van Tienhoven, Chief Executive Officer, can be contacted for more information via phone or email.