Austral Gold to Acquire Revelo’s San Guillermo and Reprado Gold-Silver Projects, Chile
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Revelo Resources Corp. has signed a Letter of Intent with Austral Gold Ltd., allowing Austral to purchase Revelo’s gold-silver projects at San Guillermo and Reprado located in northern Chile, in exchange for common shares in Austral and a royalty on future production from the projects. The agreement is subject to due diligence and the signing of definitive documentation in Chile within 90 days and regulatory and exchange approvals.
“This is an important development for Revelo as it shows how we plan to advance the company’s portfolio by identifying distinctive strategies for each of our projects,” said Tim Beale, president and CEO of Revelo.
“Austral is a dynamic, junior precious metals producer, with significant potential for growth in Chile and Argentina. Revelo is now linked to Austral’s future success, and we believe that further collaborations may be possible in the future,” added Beale.
The LOI allows Austral to gain a 100 percent interest in the San Guillermo and Reprado projects in exchange for:
• 10,000,000 common shares in Austral, currently valued at approximately C$1.5M:
A value cap of US$2.11M will be applied to the transaction, and the number of shares correspondingly reduced should AGLD’s volume-weighted average market price (VWAP) on the Toronto Venture Exchange for the twenty (20) trading day period ending on the last trading day immediately prior to the completion date, cause the value of the transaction to exceed this amount.
• 1 percent NSR royalty on future production at Reprado
• 0.5 percent NSR royalty on future production at San Guillermo
ABOUT SAN GUILLERMO AND REPRADO
San Guillermo and Reprado are located along the Paleocene mineral belt in central-northern Chile, in a similar geological setting to, and some 120 km south-southwest of, the important precious metals mineral district at El Peñon (Yamana Gold), which has produced several million ounces of gold and hundreds of millions of ounces of silver over the last 20 years or so. The projects are located some 66 km east-southeast and east respectively of the coastal town of Taltal, at modest altitudes, close to the Pan-American Highway, and have easy access.
Both San Guillermo and Reprado comprise geologic extensions to the Amancaya precious metals vein deposits where Austral’s newest gold-silver mine is slated to produce approximately 50,000 gold equivalent oz per year. Amancaya and its extensions represent an emerging epithermal gold-silver quartz-vein district with geological similarities to the El Peñon mining district to the north. The properties are prospective for high-grade, vein-style, epithermal precious metals mineralisation of low-sulphidation type, and several low-sulphidation epithermal (quartz-adularia-illite related) gold and silver vein targets occur on both properties, and in both cases have in part been tested by historic trenching and drilling with encouraging results.
San Guillermo surrounds Amancaya and is host to demonstrable extensions to the precious metals vein district emerging at Amancaya, with several high-grade veins cut in drill holes to the north and south on Revelo’s property. The Reprado project area is centred less than 20 km due north and lies directly along trend from the centre of the vein district at Amancaya and San Guillermo, and is also host to mineralized precious metals veins cut in trenches and shallow, historic drill holes.
About Revelo
Revelo has consolidated an outstanding portfolio of 26 projects prospective for copper, gold and silver located along proven mineral belts in one of the world’s top mining jurisdictions - Chile. Revelo’s total exposure to mineral tenements in northern Chile is around 300,000 hectares. Revelo has signed an LOI with Hochschild Mining PLC for an option, sale and royalty agreement at its Loro gold-silver project. Revelo has also signed the LOI with Austral Gold Ltd. for its San Guillermo and Reprado projects.
To stop by Revelo’s website, CLICK HERE
About Austral Gold
Austral Gold Limited is a growing precious metals mining, development and exploration company building a portfolio of quality assets in Chile and Argentina. The company’s flagship Guanaco project in Chile is a low-cost gold and silver producing mine with further exploration upside. Austral commenced open-pit mining operations at Amancaya in 2017. Amancaya is 75km from the Guanaco processing plant, where the company intends to transport production. A PFS completed in mid-2017 showed robust financial performance is expected from operating both operations as a combined operation, with five years of mine life from reserves. The company also owns 70 percent and is operator of the underground silver-gold Casposo mine in San Juan, Argentina. With an experienced local technical team and highly regarded major shareholder, Austral’s goal is to continue to strengthen its asset base through acquisition and discovery.
To stop by Austral Gold’s website, CLICK HERE
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