Austral Gold Completes Sale of Shares to Related Parties

Rhea-AI Summary

Austral Gold (ASX: AGD, TSXV: AGLD, OTCQB: AGLDF) announced that its subsidiary, Austral Gold Canada (AGCL), has completed the sale of shares in Unico Silver to two company directors, Eduardo Elsztain and Saul Zang. The transaction, based on a share purchase agreement dated June 18, 2024, involved AGCL selling 5,458,833 Unico shares to Elsztain and 963,323 shares to Zang at a price of A$0.16 per share, resulting in total proceeds of A$1,027,545 (US$682,393/CDN$935,014). No finder's fees were incurred. A clerical error in a prior announcement was corrected, clarifying that Zang purchased 963,323 shares instead of the previously reported 135,829 shares.

Positive

• Austral Gold raised A$1,027,545 from the sale of Unico shares.
• The transaction was completed without incurring any finder's fees.

Negative

• The sale involved related parties, which may raise governance concerns.

Sydney, Australia--(Newsfile Corp. - June 24, 2024) - Established gold producer Austral Gold Limited (ASX: AGD) (TSXV: AGLD) (OTCQB: AGLDF) ("Austral" or the "Company") advises that further to its announcement of June 20, 2024, its subsidiary Austral Gold Canada Limited ("AGCL") completed the sale of shares of Unico Silver Limited ("Unico"), to two of the Company's directors, Eduardo Elsztain and Saul Zang, pursuant to a share purchase agreement dated June 18, 2024 (the "Agreement").

Under the agreement, AGCL sold 5,458,833 previously issued common shares of Unico ("Unico Shares") to Mr. Elsztain and 963,323(1) Unico Shares to Mr. Zang at a price per Unico Share of A$0.16 per share.

Total proceeds from the transaction was A$1,027,545 (US$682,393/CDN$935,014).
There were no finder's fees paid in the transaction.

(1) In the press release dated 2024 June 19, the Company reported that Mr. Zang was purchasing 135,829 Unico Shares. This was a clerical error - that number was actually an estimate of the aggregate number of Australian dollars comprising the purchase price for Mr. Zang's purchase, at an estimated price of A$0.14 per Unico Share. Under the Agreement, the price per Unico Share was to be equal to the greater of a five-day VWAP and the Closing Price for Unico Shares on the trading day immediately prior to the Closing Date. The five-day VWAP was equal to A$0.14 per Unico Share, but the closing price for Unico Shares on the trading day immediately prior to the Closing Date was A$0.16. Mr. Zang paid A$154,132 for the 963,323 Unico Shares purchased by him.

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/214259

FAQ

What transaction did Austral Gold complete involving Unico Silver?

Austral Gold completed the sale of shares in Unico Silver to two company directors, Eduardo Elsztain and Saul Zang, raising A$1,027,545.

How many Unico Silver shares did Austral Gold sell to Eduardo Elsztain?

Austral Gold sold 5,458,833 Unico Silver shares to Eduardo Elsztain.

What was the price per Unico Share in the transaction completed by Austral Gold?

The price per Unico share was A$0.16.

How much did Austral Gold raise from the sale of Unico Silver shares?

Austral Gold raised a total of A$1,027,545 (US$682,393/CDN$935,014) from the sale.

Were there any fees associated with Austral Gold's share sale transaction?

No, there were no finder's fees paid in the transaction.

What correction did Austral Gold make regarding Saul Zang's share purchase?

Austral Gold corrected that Saul Zang purchased 963,323 Unico shares instead of the previously reported 135,829 shares.

What exchange rates were relevant in Austral Gold's recent sale of Unico shares?

The transaction resulted in proceeds of A$1,027,545, which is US$682,393 or CDN$935,014.