Patagonia Gold First Quarter 2020 Financial Results
VANCOUVER, July 14, 2020 - Patagonia Gold Corp. (“Patagonia” or the “Company”) (TSXV: PGDC) is pleased to announce its unaudited results for the fiscal period ended March 31, 2020 (“Q1 2020”). The financial statements together with the management’s discussion and analysis (“MD&A”) are available on the Company’s website and on SEDAR at www.sedar.com.
Highlights
- Revenue of US $5.22 million and gross profit of US $2.77 million in Q1 2020.
- Total production of 1,937 gold ounces and 41,377 silver ounces in Q1 2020.
- Requested quotations for potential construction of underground mine at Cap-Oeste gold / silver project and successfully completed bulk metallurgical tests at the Martha process plant located 100 km south east of Cap-Oeste.
- Received regulatory approval for Normal Course Issuer Bid to re-purchase up to 15,897,199 common shares.
- Extended agreement with Latin Metals Inc. for the proposed acquisition of the Mina Angela project. Definitive agreement expected to be signed by September 12, 2020.
- Optimized and reduced costs for operations in Santa Cruz Province of Argentina through the merger of subsidiaries Patagonia Gold SA (PGSA) and Cerro Cazador SA (CCSA) into one legal entity and reduced provincial government interest to 5%.
- Initiated RAB drill campaign and channel sampling program at Calcatreu gold / silver project in Rio Negro province to test new geophysical targets, which are expected to expand the existing mineral resources in ore shoots that remain open down-plunge.
Christopher van Tienhoven, CEO commented: “Patagonia continues to generate cash flow from its residual heap leach operations at Lomada and Cap-Oeste while remaining focused on the development of, and ultimately putting Cap-Oeste into production with processing at the Martha plant. Despite the COVID19 pandemic, the Company is using all of its efforts to mitigate the effects on its operations and is working with stakeholders to provide support as much as possible.”
In addition, in accordance with BC Instrument 51-516 - Temporary Exemptions from Certain Requirements to File or Send Securityholder Materials of the British Columbia Securities Commission, the Company has delayed the public filing of its executive compensation disclosure. The Company will file such disclosure in the management information circular in respect of its next annual general meeting of shareholders.
Qualified Person’s Statement
Donald J. Birak, an independent geologist and Registered Member of SME and Fellow of AusIMM, the qualified person as defined by National Instrument 43-101 has approved the scientific and technical content of this press release.
About Patagonia Gold
Patagonia Gold Corp. is a mining and development company listed on the TSX Venture Exchange. The Company seeks to grow shareholder value through exploration and development of gold and silver projects in the Patagonia region of Argentina. The Company is primarily focused on the Calcatreu project in Rio Negro and the development of the Cap-Oeste underground project. Patagonia, indirectly through its subsidiaries or under option agreements, has mineral rights to over 360 properties in several provinces of Argentina and Chile and is one of the largest landholders in the province of Santa Cruz, Argentina.
For more information, please contact:
Dean Stuart
T: 403 617 7609
E: dean@boardmarker.net
Christopher van Tienhoven, Chief Executive Officer
Patagonia Gold Corp.
T: +54 11 5278 6950
E: cvantienhoven@patagoniagold.com
FORWARD-LOOKING STATEMENTS
This news release contains certain forward-looking statements, including, but not limited to, statements with respect to, among other things, the potential construction and development to production of the Cap-Oeste underground project, the results of the metallurgical tests at the Martha plant, the definitive agreement for the acquisition of the Mina Angela project, the impact of the merger of Patagonia Gold SA (PGSA) and Cerro Cazador SA, the anticipated results of the program at the Calcatreu gold / silver project, advancement and development of gold and silver projects in the Patagonia region of Argentina, anticipated growth in shareholder value, and the filing of the Company’s executive compensation disclosure. Wherever possible, words such as “may”, “will”, “should”, “could”, “expect”, “plan”, “intend”, “anticipate”, “believe”, “estimate”, “predict” or “potential” or the negative or other variations of these words, or similar words or phrases, have been used to identify these forward-looking statements. These statements reflect management’s current beliefs and are based on information currently available to management as at the date hereof.
Forward-looking statements involve significant risk, uncertainties and assumptions. Many factors could cause actual results, performance or achievements to differ materially from the results discussed or implied in the forward-looking statements. These factors should be considered carefully and readers should not place undue reliance on the forward-looking statements. Although the forward-looking statements contained in this news release are based upon what management believes to be reasonable assumptions, the Company cannot assure readers that actual results will be consistent with these forward-looking statements. These forward-looking statements are made as of the date of this news release, and the Company assumes no obligation to update or revise them to reflect new events or circumstances, except as required by law.
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
