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Patagonia increases loan as it eyes Hunt

Patagonia Gold (AIM: PGD) has increased a loan facility as it progresses a reverse takeover of Canada’s Hunt Mining (TSXV: HMX).
Patagonia increases loan as it eyes Hunt Patagonia increases loan as it eyes Hunt Patagonia increases loan as it eyes Hunt Patagonia increases loan as it eyes Hunt Patagonia increases loan as it eyes Hunt

Hunt Mining’s Martha operations in Argentina

Staff reporter

Patagonia said it had increased a US$15 million loan facility, announced in March from a company controlled by its non-executive chairman and majority shareholder Carlos Miguens,  to $15.5 million "to provide additional headroom" during this period.

The South America-focused company had ended 2018 in the red and announced it would close its Cap Oeste and Lomada de Leiva mines in Santa Cruz, Argentina, in February.  

Hunt's flagship gold-silver Martha operation is also in Santa Cruz and the company recently shored up plans for a second mining operation in the province.
  
The pair announced the agreed RTO last month, with Hunt to be renamed Patagonia Gold and become a tier 2 mining issuer on the TSX Venture Exchange.

Patagonia shareholders are expected to hold about 80% of the resulting issuer.

Hunt's largest shareholder, chairman and CEO Tim Hunt, gave written consent for the acquisition of about 83% of the issued share capital he controlled, Patagonia said.

Patagonia said the share-for-share exchange offer, of about 10.76 new Hunt shares in exchange for each scheme share, attributed an implied value of £17.18 million (US$21.6 million) to Patagonia and a 76.7% premium to the volume weighted average price per Patagonia share over the three months to May 30.

Miguens and Tim Hunt have said the combination would offer synergies and provide a strong platform for growth.