August 11, 2021
Vancouver – August 11, 2021 – Pampa Metals Corp. (“Pampa Metals” or the “Company”) is pleased to announce that further to the news release of July 28, 2021, where the Company announced Austral Gold Ltd. (“Austral” – TSX-V: AGLD / ASX: AGD), a company with a producing gold mine complex in Chile, signed an option to acquire up to an 80% joint venture interest in two of Pampa Metals’ projects, Austral has initiated exploration activities at the Morros Blancos project. In addition, the closing conditions pursuant to the Option Agreement between the Company and Austral have been met.
Julian Bavin, CEO of Pampa Metals, commented: “We are pleased to see the initiation of exploration activities at our Morros Blancos project, one of two projects recently optioned by Austral. Austral brings great expertise in gold and silver exploration and is currently operating the active Amancaya gold-silver mine located immediately to the west of Morros Blancos in adjacent mineral concessions. We look forward to seeing Austral’s exploration program develop.”
Austral was recently granted an option to acquire up to an 80% joint venture interest in stages in Pampa Metals’ Morros Blancos and Cerro Blanco properties in exchange for certain cash payments, exploration expenditures and the return to treasury of 2,963,132 shares of Pampa Metals held by Austral’s wholly owned subsidiary, Revelo Resources Corp. In addition, Austral is required to complete a bankable feasibility study to earn the 80% interest in either or both properties. If the studies indicate that copper is the most valuable commodity instead of gold and silver, the Company can earn back an 80% interest under the same terms and conditions as those for Austral.