The Calcatreu gold project was acquired by Patagonia Gold in 2018.
Black River Mine, a newly established entity led by Argentine businessman Carlos J. Miguens, a shareholder in Patagonia Gold, comprises a group of investors. The financing will be channeled through Patagonia Gold’s wholly owned subsidiary, Patagonia Gold Canada (PG Canada). Under the agreement, Black River Mine will acquire up to 40 million preferred shares of PG Canada at $1 per share, securing a 40% stake in the subsidiary, while Patagonia Gold retains a 60% controlling interest.
The agreement grants Black River Mine the right to nominate one of three directors to PG Canada’s board and participate in future equity issuances, subject to specified terms. The transaction awaits standard conditions, including shareholder approval and final clearance from the TSX Venture Exchange. All proceeds will be dedicated to advancing the Calcatreu project and covering associated financing costs.
Located near the southern border of Rio Negro Province, the Calcatreu project was acquired by Patagonia Gold from Pan American Silver in 2018. The project holds an estimated 746,000 gold equivalent ounces in measured and indicated resources and 390,000 ounces in inferred resources, underscoring its potential for gold production.
In a related development, Patagonia Gold expanded its regional presence in October 2024 by acquiring four new mineral concessions totaling 15,494 hectares near its Mina Angela project in Argentina. This acquisition increased the company’s mineral holdings in the area to over 52,000 hectares, strengthening its portfolio.
Carlos J. Miguens, leading Black River Mine, expressed confidence in the partnership, stating: “This investment reflects our commitment to supporting Patagonia Gold’s vision for the Calcatreu project and its sustainable development in Rio Negro.”
The funding agreement positions Patagonia Gold to accelerate the Calcatreu project, enhancing its contribution to Argentina’s mining sector. The company plans to provide updates on project milestones and regulatory approvals, maintaining transparency with stakeholders. This collaboration highlights Patagonia Gold’s focus on expanding its operations while leveraging strategic investments to drive growth in Rio Negro.
