Hunt Mining Corp. agreed to acquire Patagonia Gold PLC through a reverse takeover to create Patagonia Gold Corp., a tier 2 mining issuer that would trade on the TSX Venture Exchange under the PGDC symbol.
Patagonia Gold announced earlier this year that it was discussing future financing alternatives after the company shut down its Lomada de Leiva and Cap Oeste gold-silver mines in Argentina due to lower-than-expected production volumes.
Hunt Mining owns the La Josefina project, where it made first shipments of gold-silver concentrates from the property's Ailin vein in October 2018.
Under the terms, Patagonia shareholders would receive about 10.76 shares of the combined entity for each share held. They would also own 254,355,192 shares, or 80%, of the resulting issuer, which is expected to have about 317,943,990 shares.
Patagonia will delist from London's AIM upon closing of the deal, which remains subject to approval of shareholders and the U.K. court. The combined entity will be led by CEO Christopher van Teinhoven, CFO Cristian Lopez Saubidet and COO Leon Hardy, according to a May 30 release.