Patagonia bolsters South America reach by regaining COSE property

The company is not making a monetary payment to Pan American Silver linked to the deal.

Umesh Ellichipuram

Mining company Patagonia Gold has entered an agreement to reacquire the COSE property from Pan American Silver.

Patagonia agreed to assume costs as well as liabilities linked to COSE, without making any monetary payment to Pan American Silver.

In 2018, Patagonia divested COSE to Pan American Silver, which ceased operations at the site in 2022 after extracting the main known mineral deposit.

Patagonia will now take on the property’s remaining closure expenses associated with environmental monitoring.

Completion of the current deal hinges on Patagonia fulfilling certain conditions within 30 days, including the assumption of existing net smelter return (NSR) royalties.

The reacquisition will allow Patagonia to consolidate its holding in the El Tranquilo concession block, which holds its Cap Oeste Project, together with several other prospects and mineral occurrences.

Publicly listed Patagonia Gold is a mining company with a focus on South America that seeks to explore and develop gold and silver assets in Argentina’s Patagonia region.

The development of the Cap-Oeste subterranean project and the Calcatreu project in Rio Negro are its main focus points.

Patagonia is one of the biggest landowners in the Argentine province of Santa Cruz and indirectly owns the mineral rights to more than 430 properties in several Chilean and Argentine regions through its subsidiaries or through option agreements.

In March 2021, Patagonia obtained environmental permits to develop the Cap-Oeste Gold/Silver Project and restart the Lomada de Leiva (Lomada) gold project in Argentina’s Santa Cruz Province.

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