SYDNEY, AUSTRALIA: Austral Gold Limited, a well-established gold producer listed on multiple stock exchanges, has announced a major transaction involving its Argentine subsidiary. The deal, orchestrated by Austral Gold Argentina S.A. (AGASA) and New Dimension Guernsey Limited, an affiliate of Capella Minerals Limited, will see the complete transfer of their shares in Sierra Blanca S.A. (SBSA) to Unico Silver Limited, a company known for its silver projects.
Sierra Blanca S.A. operates the Sierra silver-gold project situated next to Unico’s Pinguino Project in the Santa Cruz province of Argentina. This strategic location is expected to bolster Unico’s mining operations in the region.
The transaction is structured with a total consideration for SBSA comprising 5 million ordinary shares of Unico Silver Limited at an issue price of A$0.151. This equates to Austral’s share being approximately 2.73 million USL shares, valued at around A$412,910 or US$275,535, in addition to cash compensation for certain administrative fees incurred by Sierra Blanca in the first half of 2024, capped at A$20,000.
Completion of the agreement is contingent upon several conditions, including Unico Silver Limited obtaining shareholder approval in accordance with ASX Listing Rule 10.11 and the execution of a deed of assignment concerning a royalty over the Sierra Blanca permits with third parties. These conditions are expected to be fulfilled by July 31, 2024, or a mutually agreed upon later date.
In a related statement, Eric Roth, President and CEO of Capella Minerals, expressed satisfaction with the sale of the Sierra Blanca gold-silver project to Unico Silver. He highlighted Unico’s established presence and expertise in the Santa Cruz region, which positions them well to advance the Sierra Blanca project. Roth also noted that the sale aligns with Capella’s strategy to divest non-core assets in the Americas and concentrate on exploration activities in Scandinavia.
The consolidation of the Sierra Blanca project under Unico is anticipated to create synergies with their existing Cerro Leon project and enhance their portfolio in the precious metals sector.
Sierra Blanca S.A owns the Sierra Blanca Project and the Cruz del Sur Project. The Sierra Blana Project is made up of 5 mining titles comprising 7,997 Ha located east and west of Unico’s Angostura Pinguino properties respectively, concluding Unico’s consolidation of the known main geological volcanic rocks and structures that host silver-gold epithermal veins in the area.
The Cruz del Sur Project which is made up of 2 additional mining titles comprising 1,752Ha that was explored by IAMGOLD in the early 2000’s.
Austral acquired its pro-rata interest in Sierra Blanca pursuant to an option agreement with New Dimension Resources announced on 13 October 2020.