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Patagonia Gold to acquire past-producing Mina Angela property from Latin Metals

Patagonia Gold Corp. entered into a preliminary agreement with Latin Metals Inc. for an option to acquire the past-producing Mina Angela property near its Calcatreu gold project in Argentina.

After a six-month due diligence period, Patagonia Gold can acquire Mina Angela for US$1 million and a 1% net smelter royalty, which can be halved for US$1 million.

Mina Angela comprises 44 individual claims covering 200 square kilometers and was in production between 1978 and 1992 when it was shut down due to decreasing metal prices and increasing costs.

Patagonia Gold said Aug. 13 that the property's vein system is poorly delineated and remains open along strike and at depth.

The company recently secured a US$15 million loan, in part to start feasibility work on Calcatreu, which it acquired from Pan American Silver Corp. in February 2018.