PATAGONIA GOLD CORP. Patagonia Gold Corp. announces that it has agreed to reacquire the COSE property ("COSE") from Pan American Silver Corp. ("PAAS").
On February 27, 2024, the Company entered into an agreement (the "Agreement") pursuant to which it agreed to reacquire COSE in exchange for assuming PAAS's costs and liabilities in relation to COSE (the "Transaction"). The Company sold COSE to PAAS in 2018 and PAAS closed the COSE mine in 2022, after mining the known, main COSE mineral deposit. The Company is not making a monetary payment to PAAS in connection with the Transaction but has agreed to assume the remaining closure costs of COSE, which are mainly related to ongoing environmental monitoring.
Completion of the Transaction is subject to, among other things, the satisfaction or waiver of certain conditions precedent relating to the Company's assumption of existing NSR royalties. The Company has 30 days to satisfy such conditions precedent and the Transaction will be automatically deemed closed and become effective upon PAAS's written acceptance of the Company satisfying such conditions. By reacquiring COSE, the Company will consolidate its holding in the El Tranquilo concession block, which holds the Company's Cap Oeste Project, together with several other prospects and mineral occurrences.
