Precious metals exploration company Austral Gold Limited has entered into a non-binding letter of intent (“LOI”) with Canadian company Pampa Metals whereby Austral may acquire up to an 80% interest in the Pampa-held Cerro Blanco and Morros Blancos properties, located in northern Chile.
Austral owns a 100% interest in the Guanaco/Amancaya mine in Chile and an attractive portfolio of exploration projects in the country’s Paleocene Belt, including those acquired in the recent acquisition of Revelo Resources Corp.
The company’s Chief Executive Officer Stabro Kasaneva said the primary exploration targets of Austral on the Cerro Blanco and Morros Blancos properties are gold, silver and other precious metals.
“Following our recent acquisition of Revelo Resources Corporation, which included exploration projects located close to our Guanaco/Amancaya mining complex and a 19.9% shareholding interest in Pampa, we are pleased to enter into this LOI, which should enable us to further increase the number of projects that we own or control in the area,” he continued.
“Our interest in this Transaction is consistent with our strategy to obtain a leading role in the Paleocene-Eocene Belt in Chile which we believe is a prolific mineralized belt that is underexplored for precious metals.”
Austral expects the Transaction to close before the end of June 2021.