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Patagonia terminates earn-in deal on Trilogy's San Jose gold project

Patagonia Gold Corp. said Dec. 10 that the deal to acquire a majority stake in the San Jose gold project in Uruguay from Trilogy Mining Corp., American Mining Holdings Ltd., Ecovent SA and Minerales Cala SA is now terminated.

The deal, signed in 2016, gave Patagonia the right to earn up to an 80% interest in the project.

Patagonia chose to discontinue the funding under the option agreement and focus instead on the development of its Cap Oeste gold project and the advancement of its Calcatreu gold project, both in Argentina.

Patagonia will pay Trilogy US$50,000 for the termination, and in exchange, will receive Trilogy common shares, resulting in Patagonia owning 42.5% of the issued and outstanding shares of Trilogy.