Pan American Silver to acquire COSE project from Patagonia Gold

Pan American Silver grants option to Patagonia Gold to acquire Calcatreu deposit
All amounts are expressed in US$ unless otherwise indicated. This news release contains forward-looking information. Readers should refer to the risks and assumptions set out in the “Cautionary Note Regarding Forward-Looking Statements and Information” at the end of this news release.

Pan American Silver Corp. (“Pan American”) PAAS, -6.46% (PAAS) today announced a binding agreement whereby Minera Triton Argentina S.A. (“Minera Triton”), a wholly-owned subsidiary of Pan American, will acquire 100% of Patagonia Gold’s Cap-Oeste Sur Este project (“COSE”) in the province of Santa Cruz, Argentina, from Patagonia Gold S.A. (“PGSA”), a wholly-owned subsidiary of Patagonia Gold Plc (“Patagonia Gold”) (the “COSE Transaction”).
Total consideration for the COSE Transaction is US$15 million, of which US$7.5 million is deferred, plus a 1.5% net smelter return (“NSR”) royalty. The COSE deposit is situated 1.4 kilometres to the southeast of Patagonia Gold’s Cap-Oeste deposit in the province of Santa Cruz, Argentina.

In addition, Patagonia Gold has been granted an exclusive option to purchase from Minera Aquiline Argentina S.A., a wholly-owned subsidiary of Pan American Silver, the Calcatreu gold-silver project for US$15 million. The Calcatreu deposit is a low sulphidation epithermal style gold-silver deposit located 60 kilometres south of the town of Ingeniero Jacobacci in the province of Rio Negro, Argentina.
The option, exercisable at the discretion of Patagonia Gold, will remain available for a period of six months, during which time Patagonia Gold can complete its due diligence review of the project.
The COSE Transaction is expected to close on or about May 31, 2017.
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