Australian mining firm Austral Gold has closed the sale of a 100% stake in SCRN Properties Limited (SCRN) to E2 Metals for $10m.

The primary asset of SCRN is the Pinguino silver-gold-zinc-lead-indium project in Santa Cruz, Argentina.

located 30km from E2’s Conserrat project, the advanced silver-gold project comprises four mining titles that cover 9,986ha in the central-south Deseado Massif geological province.

With the deal’s completion, announced in November 2022, Austral Canada received $2.5m of a total of $5m in cash.

E2 Metals will pay the remaining cash amount in instalments over a three-year period, which includes $750,000 on the first anniversary of closing, another $750,000 on the second, and $1m on the third.

Austral will also be paid in 49.7 million shares, constituting 19.99% of E2, thereby becoming E2’s largest shareholder.

The consideration also includes 15 million E2 options.

Austral Gold CEO Stabro Kasaneva said: “We are pleased to announce the completion of the sale of Pinguino. The transaction resulted in the immediate cash injection of $2.5m to partially fund the development of the Heap Reprocessing project at our flagship Guanaco-Amancaya mine complex in Chile.

“In addition, with our 19.9% interest in E2 Metals, we retain exposure to the Pinguino project in the province of Santa Cruz, Argentina, which hosts numerous intermediate and large mining producers.

“In addition, we remain owners of 51% of the Sierra Blanca project, adjacent to Pinguino, and have an option to acquire the other 49% interest.”