Austral has agreed to pay US$0.2 million for the outstanding common shares of Casposo Argentina

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Austral Gold to acquire remaining 30% of Casposo Mine in Argentina. Photo: courtesy of Adam Radosavljevic from Pixabay.

Austral Gold Limited (‘Austral’ or ‘the Company’) (ASX: AGD; TSX-V: AGLD) is pleased to announce the Company has entered into a share purchase agreement with Troy Resources Limited (‘Troy’) (ASX: TRY) to acquire the remaining 30% interest in the Casposo silver-gold mine located in San Juan, Argentina.

Austral has agreed to pay US$0.2 million for the outstanding common shares of Casposo Argentina Ltd, (“CAL”) a wholly-owned subsidiary of Troy that owns the Casposo mine. The payment is to be made on the closing date, which we expect to occur by 28 November 2019. The agreement is also subject to standard indemnities provided by both Austral and Troy.

Austral Gold’s Chief Executive Officer Stabro Kasaneva said: “We are pleased to own 100% of Casposo and to continue with the exploration program that was launched last month as disclosed in more detail in our September 2019 quarterly report. We are also assessing opportunities to consolidate surrounding projects and source ore from third parties. All these initiatives are part of our business strategy to consolidate mineral resources with the goal of recommencing mining operations at Casposo.”

Source: Company Press Release