Patagonia Gold has signed a landmark $40 million investment agreement with newly formed Black River Mine, aimed at accelerating the development of its Calcatreu gold project in Río Negro Province, Argentina.
The investment will be structured through Patagonia’s wholly owned subsidiary, Patagonia Gold Canada (PG Canada). Under the terms, Black River Mine will purchase up to 40 million preferred shares of PG Canada at $1 per share.
Upon full subscription, Black River Mine—led by Argentine businessman Carlos J. Miguens, a current shareholder in Patagonia Gold—will own a 40% stake in PG Canada. Patagonia Gold will retain a controlling 60% interest in the subsidiary.
“This agreement marks a critical step in unlocking the full potential of the Calcatreu project,” said Patagonia Gold CEO [Name, if available]. “With the support of Mr. Miguens and his investor group, we are well-positioned to advance exploration and development activities.”
Strategic Terms and Board Representation
As part of the agreement:
- Black River Mine will have the right to appoint one of three board members to PG Canada’s board of directors.
- The group will also gain participation rights in future PG Canada equity offerings, subject to the terms outlined in the agreement.
The funding remains subject to shareholder approval and final clearance from the TSX Venture Exchange.
Calcatreu Gold Project Overview
The Calcatreu Project, located near the southern boundary of Río Negro Province, was acquired from Pan American Silver in 2018. It currently hosts:
- 746,000 gold equivalent ounces in the measured and indicated resource category
- An additional 390,000 ounces in the inferred category
Proceeds from the investment will be allocated exclusively toward project development and associated financing costs.
Expanding Regional Presence
In addition to Calcatreu, Patagonia Gold has been expanding its regional footprint. In October 2024, the company acquired four new mineral concessions near its Mina Angela project, adding 15,494 hectares to its land holdings. The total area now exceeds 52,000 hectares of mineral properties in Argentina.
This strategic investment and expanded portfolio position Patagonia Gold as a rising force in the Argentine gold exploration and development landscape.
