Calcatreu gold project. Credit: Pan American Silver
Patagonia Gold (TSXV: PGDC) said on Monday it has secured an investment of $40 million to support the development of its flagship Calcatreu project in Rio Negro, Argentina. The company’s shares jumped.
According to the Canadian gold junior, the investment is being led by Argentine businessman Carlos J. Miguens, a director and major shareholder of the company with a 43.2% equity stake.
Patagonia’s stock rose C$0.15 or 43% to C$0.50 apiece for a new 52-week high. The Argentina-focused explorer has a market capitalization of C$20.2 million.
Under the investment agreement, Black River Mine — a newly created company controlled by Miguens — will acquire 40 million preferred shares of Patagonia’s subsidiary that holds the Calcatreu project. In exchange, Black River would have the right to a 40% interest in the project and cash distributions from…
