Austral Gold Signs Agreement to Process Hualilan's Material
Austral Gold announces its subsidiary, Casposo Argentina Mining, has signed a Binding MOU with Challenger Gold to process mineralised material from the Hualilan Project at the Casposo Plant in Argentina. The three-year agreement includes:
- A US$3 million fixed payment (US$2M within 15 days, US$1M in two years)
- A US$110,000 monthly fee
- An incentive fee based on recovery margins
- Guaranteed processing of 150,000 tons annually (450,000 tons total)
Operations are expected to commence in H2 2025, with Casposo responsible for securing funding for plant refurbishment by July 31, 2025. The agreement includes an exclusivity clause until June 30, 2025.
Austral Gold annuncia che la sua filiale, Casposo Argentina Mining, ha firmato un MOU vincolante con Challenger Gold per elaborare materiale mineralizzato dal Progetto Hualilan presso l'impianto Casposo in Argentina. L'accordo triennale include:
- Un pagamento fisso di 3 milioni di dollari USA (2 milioni di dollari entro 15 giorni, 1 milione di dollari in due anni)
- Una quota mensile di 110.000 dollari USA
- Un compenso incentivante basato sui margini di recupero
- Elaborazione garantita di 150.000 tonnellate all'anno (450.000 tonnellate totali)
Le operazioni dovrebbero iniziare nel secondo semestre del 2025, con Casposo responsabile di garantire il finanziamento per la ristrutturazione dell'impianto entro il 31 luglio 2025. L'accordo include una clausola di esclusività fino al 30 giugno 2025.
Austral Gold anuncia que su subsidiaria, Casposo Argentina Mining, ha firmado un MOU vinculante con Challenger Gold para procesar material mineralizado del Proyecto Hualilan en la Planta Casposo en Argentina. El acuerdo de tres años incluye:
- Un pago fijo de 3 millones de dólares estadounidenses (2 millones dentro de 15 días, 1 millón en dos años)
- Una tarifa mensual de 110,000 dólares estadounidenses
- Una tarifa incentivadora basada en márgenes de recuperación
- Procesamiento garantizado de 150,000 toneladas anuales (450,000 toneladas en total)
Se espera que las operaciones comiencen en el segundo semestre de 2025, siendo Casposo responsable de asegurar financiamiento para la remodelación de la planta antes del 31 de julio de 2025. El acuerdo incluye una cláusula de exclusividad hasta el 30 de junio de 2025.
오스트랄 골드 는 자회사인 카스포소 아르헨티나 마이닝이 챌린저 골드와 하우랄란 프로젝트에서 카스포소 플랜트로 광물화된 물질을 처리하기 위한 구속력 있는 MOU(양해각서)를 체결했다고 발표했습니다. 3년 계약에는 다음이 포함됩니다:
- 300만 달러의 고정 지급금 (15일 이내 200만 달러, 2년 후 100만 달러)
- 매월 11만 달러의 수수료
- 회수 마진에 따른 인센티브 수수료
- 연간 15만 톤의 처리 보장(총 45만 톤)
운영은 2025년 하반기에 시작될 것으로 예상되며, 카스포소는 2025년 7월 31일까지 공장 리노베이션을 위한 자금을 확보할 책임이 있습니다. 계약에는 2025년 6월 30일까지의 독점 조항이 포함되어 있습니다.
Austral Gold annonce que sa filiale, Casposo Argentina Mining, a signé un MOU contraignant avec Challenger Gold pour traiter du matériel minéralisé du projet Hualilan à l'usine de Casposo en Argentine. Le contrat de trois ans comprend :
- Un paiement fixe de 3 millions de dollars US (2 millions dans les 15 jours, 1 million dans deux ans)
- Une frais mensuel de 110 000 dollars US
- Une prime incitative basée sur les marges de récupération
- Traitement garanti de 150 000 tonnes par an (450 000 tonnes au total)
Les opérations devraient commencer au second semestre de 2025, Casposo étant responsable de sécuriser le financement pour la rénovation de l'usine d'ici le 31 juillet 2025. L'accord comprend une clause d'exclusivité jusqu'au 30 juin 2025.
Austral Gold kündigt an, dass ihre Tochtergesellschaft Casposo Argentina Mining ein bindendes MOU mit Challenger Gold unterzeichnet hat, um mineralisiertes Material aus dem Hualilan-Projekt in der Casposo-Anlage in Argentinien zu verarbeiten. Der dreijährige Vertrag umfasst:
- Eine feste Zahlung von 3 Millionen USD (2 Millionen innerhalb von 15 Tagen, 1 Million in zwei Jahren)
- Eine monatliche Gebühr von 110.000 USD
- Eine Anreizgebühr basierend auf den Rückgewinnungsmargen
- Garantierte Verarbeitung von 150.000 Tonnen jährlich (insgesamt 450.000 Tonnen)
Es wird erwartet, dass die Betriebe im zweiten Halbjahr 2025 beginnen, wobei Casposo verantwortlich ist für die Sicherstellung der Finanzierung für die Renovierung des Werks bis zum 31. Juli 2025. Der Vertrag enthält eine Exklusivitätsklausel bis zum 30. Juni 2025.
- New revenue stream through US$3 million fixed payment
- Additional US$110,000 monthly fee plus incentive fees
- Guaranteed processing volume of 450,000 tons over three years
- Opportunity to restart currently inactive Casposo Plant
- Plant requires refurbishment investment before operations can begin
- Operations won't start until H2 2025
- US$2M upfront payment must be returned if recovery rate falls below 70% or plant restart delays occur
HIGHLIGHTS
Austral Gold Limited's subsidiary executes a Binding MOU with ASX-listed Challenger Gold (ASX: CEL) to process mineralised material from Challenger Gold's
100% owned Hualilan Project over a three-year term at the Casposo Plant in Argentina.Transaction to create a new revenue stream for the Austral Gold Group, including a US
$3 million fixed payment (US$2 million payable within 15 days of signing the Binding MOU, US$1 million due in two years), a US$110,000 m onthly fee, and an incentive fee linked to recovery margins.Operations are anticipated to commence in the second half of 2025.
Sydney, Australia--(Newsfile Corp. - December 4, 2024) - Established gold producer Austral Gold Limited (ASX: AGD) (TSXV: AGLD) (OTCQB: AGLDF) ("Austral" or the "Company") is pleased to announce that it's subsidiary, Casposo Argentina Mining Ltd. ("Casposo"), has entered into a Binding Memorandum of Understanding ("Binding MOU") with ASX-listed Challenger Gold Limited (ASX: CEL) ("Challenger") whereby Casposo proposes to process mineralised material from Challenger's Hualilan project at Casposo's Plant, in San Juan, Argentina.
Casposo expects to execute a definitive Toll Treatment Agreement within the next 15 days.
In the Binding MOU, Casposo has agreed to use its best commercial efforts, directly or through third parties, to secure the necessary funding for the refurbishment and commercial startup of the Casposo Plant by July 31, 2025.
Austral's Chief Executive Officer, Stabro Kasaneva said: "We are pleased to introduce a potential new revenue stream by processing mineralised material from Challenger Gold's Hualilan project at our Casposo plant in San Juan, Argentina. This initiative offers an opportunity to restart the plant, currently on care and maintenance, and contribute to our long-term growth strategy. We believe this project could enhance our operational capacity and create value for our shareholders."
Material terms of the Binding MOU are as follows:
- The parties agree to set up a technical and advisory committee made up of up to three professionals from each party.
- Casposo to use best commercial efforts to finance, directly or through third parties, the funds required for the refurbishment and commercial startup of the Casposo Plant on or before July 31, 2025.
The parties have agreed to enter into a formal Toll Treatment Agreement to govern the mining of minerals from the Hualilan Project, and the processing of mineralised material from Hualilan at the Casposo Plant that will contain mutually agreeable and customary terms and conditions for a transaction of this nature.
Operator: The Casposo Plant will be operated by Casposo's local branch in Argentina, named Casposo Argentina Ltd. Sucursal Argentina.
Guaranteed throughput Tonnage: guaranteed toll treatment of 150,000 tons available to Challenger per year, with a guaranteed toll treatment capacity available to Challenger of 450,000 tons over a three (3) year period.
Consideration: Challenger has agreed to pay Casposo the following:
US
$3 million , with US$2 million to be paid within the next fifteen business days and US$1 million to be paid on the second anniversary of the date of the Binding MOU, with interest accruing at a rate of6% per annum.The US
$2 million paid upfront shall be returned to Challenger if the Hualilan ore is not processed in the Casposo Plant, either because: (i) the Technical Committee determines, based on the testing of samples of minerals from the Hualilan Project and the studies relating thereto, that the recovery rate of the Hualilan mineralised material to be processed at the Casposo Plant will be below70% ; or (ii) operations of the Casposo Plant have not been relaunched on or before July 31, 2025, unless the delay is caused by matters related to the mining or extraction of mineralised material from the Hualilan Project to the Casposo Plant or matters otherwise beyond Casposo's control. In such case, the refund shall be net of the costs incurred or financed by Casposo, provided that such costs were included in the budget approved by Challenger, directly or through the Technical Committee.A fixed monthly fee of One Hundred and Ten Thousand United States Dollars (US
$110,000) , from the reopening of the Casposo Plant and throughout the rest of the term of the Toll Treatment Agreement;An Incentive Fee in accordance with the gold-equivalent ounces recovery rate achieved through the process as percentage over costs of production ranging from
20% to30% .
- Exclusivity: During negotiation of the Toll Treatment Agreement, Casposo, its shareholders, including its executives, directors and employees, shall not engage in any transaction with third parties regarding the toll treatment of the mineralized material at the Casposo Plant with any person or company other than Challenger. Exclusivity expires on the earlier of June 30, 2025, the Termination of this Binding MOU or the execution of the Toll Treatment Agreement.
The Company wishes to advise that Tyrus SA, an entity controlled by Eduardo Elsztain, currently holds a
About Austral Gold Limited
Austral 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:
David Hwang | Jose Bordogna |
Joint Company Secretary | Chief Financial Officer and Joint Company Secretary |
Austral Gold Limited | Austral Gold Limited |
david@confidantpartners.com | jose.bordogna@australgold.com |
+61 433 292 290 | +61 466 892 307 |
Forward-Looking Statements
Statements in this news release that are not historical facts are forward-looking statements. Forward-looking statements are statements that are not historical, and consist primarily of projections - statements regarding future plans, expectations and developments. Words such as "expects", "intends", "plans", "may", "could", "potential", "should", "anticipates", "likely", "believes" and words of similar import tend to identify forward-looking statements. Forward-looking statements in this news release include the Company's expectation that the Binding MOU creates a new revenue stream, the Company's anticipation that it can agree with Challenger on the terms of a formal Toll Treatment Agreement (and the timing thereof), that it can finance the refurbishment of the Casposo Plant and complete the refurbishment by July 31, 2025, that the refurbished Casposo Plant can process the amount of mineralised material contemplated in the Binding MOU and that the Company understands that Mr. Elsztain's beneficial equity interest in Challenger is expected to increase by approximately
All of these forward-looking statements are subject to a variety of known and unknown risks, uncertainties and other factors that could cause actual events or results to differ from those expressed or implied, including, without limitation, uncertainty of exploration programs, development plans and cost estimates, commodity price fluctuations; political or economic instability and regulatory changes; currency fluctuations, the state of the capital markets especially in light of the effects of the novel coronavirus, uncertainty in the measurement of mineral resources and reserves and other risks and hazards related to the exploration of a mineral property, and the availability of capital. You are cautioned that the foregoing list is not exhaustive of all factors and assumptions which may have been used. Austral cannot assure you that actual events, performance or results will be consistent with these forward-looking statements, and management's assumptions may prove to be incorrect. Austral's forward-looking statements reflect current expectations regarding future events and operating performance and speak only as of the date hereof and Austral does not assume any obligation to update forward-looking statements if circumstances or management's beliefs, expectations or opinions should change other than as required by applicable law. For the reasons set forth above, you should not place undue reliance on forward-looking statements.
To view the source version of this press release, please visit https://www.newsfilecorp.com/release/232538
FAQ
What are the financial terms of Austral Gold's (AGLDF) agreement with Challenger Gold?
When will Austral Gold (AGLDF) begin processing Hualilan's material at Casposo Plant?