Austral Gold Completes Further Sale of Unico Shares

Rhea-AI Summary

Austral Gold (ASX: AGD) (TSXV: AGLD) (OTCQB: AGLDF) has announced the completion of a further sale of Unico Silver shares by its subsidiary Austral Gold Canada (AGCL). The transaction, executed on August 6, 2024, involved the sale of 8,139,023 Unico shares to Inversiones Financieras del Sur SA Sociedad Anonima (IFISA), Austral's largest shareholder, at A$0.1863 per share. The total transaction value amounted to A$1,516,300 (US$987,869/CDN$1,367,804). This sale price was determined based on the higher of the five-day volume-weighted average price and the closing price on the day before the transaction. No finder's fees were associated with this deal.

Positive

• Sale of non-core assets potentially improving liquidity
• Transaction value of A$1,516,300 (US$987,869/CDN$1,367,804)

Negative

• Reduction in ownership of Unico Silver shares

Sydney, Australia--(Newsfile Corp. - August 6, 2024) - Established gold producer Austral Gold Limited (ASX: AGD) (TSXV: AGLD) (OTCQB: AGLDF) ("Austral" or the "Company") advises that further to its announcement of July 25, 2024, its subsidiary Austral Gold Canada Limited ("AGCL") completed the sale of shares of Unico Silver Limited ("Unico"), to the Company's largest shareholder, Inversiones Financieras del Sur SA Sociedad Anonima (IFISA), pursuant to a share purchase agreement dated July 24, 2024 (the "Agreement"). The Company's directors, Eduardo Elsztain and Saul Zang, are also directors and shareholders of IFISA.

Under the agreement, AGCL sold 8,139,023 previously issued common shares of Unico ("Unico Shares") to IFISA at a price of A$0.1863 per Unico Share ("Cash Consideration"), totaling A$1,516,300 (US$987,869/CDN$1,367,804).

The Cash Consideration per Unico Share was equal to the greater of: (a) A$0.1863 per share, which is equal to the five-day volume weighted average price for Unico shares on the ASX for the five-trading day period ended July 24, 2024; and (b) an amount equal to the closing price on the trading day immediately prior to the closing date, which was A$0.1750 as of 2 August 2024.

There were no finder's fees paid in the transaction.

About Austral Gold

Austral Gold is a growing gold and silver mining producer building a portfolio of quality assets in the Americas based on three strategic pillars: production, exploration and equity investments. Austral continues to lay the foundation for its growth strategy by advancing its attractive portfolio of producing and exploration assets.

For more information, please visit the Company's website at www.australgold.com.

Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

Release approved by the Company's Chief Executive Officer of Austral Gold, Stabro Kasaneva.

For additional information please contact:

Stabro Kasaneva
Chief Executive Officer
Austral Gold Limited
mailto:stabro.kasaneva@australgold.com
+56 9 9822 3563

Jose Bordogna
Chief Financial Officer
Austral Gold Limited
jose.bordogna@australgold.com
+61 466 892 307

To view the source version of this press release, please visit https://www.newsfilecorp.com/release/218997

FAQ

How many Unico Silver shares did Austral Gold sell on August 6, 2024?

Austral Gold's subsidiary, Austral Gold Canada , sold 8,139,023 shares of Unico Silver on August 6, 2024.

What was the price per share for Unico Silver in the August 6, 2024 transaction?

The price per share for Unico Silver in the August 6, 2024 transaction was A$0.1863.

Who purchased the Unico Silver shares from Austral Gold (AGLDF)?

The Unico Silver shares were purchased by Inversiones Financieras del Sur SA Sociedad Anonima (IFISA), which is Austral Gold's largest shareholder.

What was the total value of the Unico Silver share sale by Austral Gold (AGLDF) on August 6, 2024?

The total value of the Unico Silver share sale was A$1,516,300 (US$987,869/CDN$1,367,804).