Astra Executes Definitive Agreement to Acquire SQM's Remaining 20% Interest in the Pampa Paciencia Gold Project in Northern Chile

Rhea-AI Summary

Astra Exploration Inc. has signed a definitive purchase agreement with Sociedad Quimica y Minera de Chile S.A. to acquire a 20% interest in the Pampa Paciencia project, located in Northern Chile. This acquisition will grant Astra full control, allowing it to own 100% of the property. The transaction involves issuing 1,455,208 common shares valued at $174,625 based on a closing price of $0.12 per share. The agreement is subject to TSX Venture Exchange approval, and the shares will have a four-month hold period.

Positive

• Acquisition of 20% interest grants Astra 100% control over Pampa Paciencia property.
• Strategic expansion in an emerging gold-silver district in Northern Chile.

Negative

• The transaction may dilute existing shareholders due to the issuance of new shares.

VANCOUVER, BC, Nov. 3, 2022 /PRNewswire/ - Astra Exploration Inc. (TSXV: ASTR) (OTCQB: ATEPF) ("Astra" or the "Company") is pleased to announce that it has entered into a definitive purchase agreement (the "Purchase Agreement") with Sociedad Quimica y Minera de Chile S.A. (the "Seller") with respect to the acquisition of a 20% interest and title to the Pampa Paciencia project located in Northern Chile (the "Pampa Paciencia Property"). Astra Exploration Inc. currently owns the remaining 80% interest in the Pampa Paciencia Property.

CEO Brian Miller Commented: "The strategic expansion and acquisition of SQM's remaining 20% stake in the Pampa Paciencia project is an extremely positive development for Astra Exploration.  Acquiring the remaining 20% interest enables Astra to control 100% of critical prospective ground and expands our strategic foothold in this emerging epithermal district of Northern Chile. This is a major milestone for Astra and our shareholders."

Pursuant to the Purchase Agreement dated November 2^nd, 2022, the Company will acquire the 20% interest in the Pampa Paciencia Project held by the Seller for total consideration of the issuance to the Seller of 1,455,208 common shares in the capital of the Company (the "Consideration Shares") at a deemed value of $174,625 based on the Company's closing price of $0.12 per share on November 2. The closing of the transaction contemplated by the Purchase Agreement remains subject to approval of the TSX Venture Exchange. The Consideration Shares will be subject to a four month hold period pursuant to applicable securities laws.

About Pampa Paciencia

Pampa Paciencia is a 3,840 hectare road-access low sulphidation epithermal ("LSE") gold-silver project located within an active mining district less than 15 kilometres from two major mines (Sierra Gorda and Spence) and five kilometres from the Faride LSE mine.

Astra has completed drilling, mapping and sampling, geophysical surveys, and localized trenching, at the Pampa Paciencia Project, and in doing so has defined a vein boulder field over approximately 75% of the project area. The veins do not outcrop as the majority of the project area is covered by a thin layer of gravels and caliche but the vein float can be used to identify areas of high prospectively.

About the Company

Astra Exploration Inc. is an exploration company based out of Vancouver, BC. Astra is engaged in the acquisition, exploration and development of epithermal gold-silver properties in Chile and is building a portfolio of high-quality projects. Astra's current focus is the development of the Pampa Paciencia Project.

Qualified Person

The technical data and information as disclosed in this news release has been reviewed and approved by Darcy Marud. Mr. Marud is a Practicing Member of the Association of Professional Geoscientists of Ontario and is a qualified person as defined under the terms of National Instrument 43-101 – Standards of Disclosure for Mineral Projects.

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

Mineralization hosted on adjacent and/or nearby and/or geologically similar properties is not necessarily indicative of mineralization hosted on the Company's properties.

This news release may contain certain "Forward-Looking Statements" within the meaning of the United States Private Securities Litigation Reform Act of 1995 and applicable Canadian securities laws.  When or if used in this news release, the words "anticipate", "believe", "estimate", "expect", "target, "plan", "forecast", "may", "schedule" and similar words or expressions identify forward-looking statements or information.  These forward-looking statements or information may relate to the Company's business activities; exploration on the Company's properties; completion of the transactions contemplated by the Purchase Agreement; receipt of all required regulatory approvals; and marketing initiatives.  Such statements represent the Company's current views with respect to future events and are necessarily based upon a number of assumptions and estimates that, while considered reasonable by the Company, are inherently subject to significant business, economic, competitive, political and social risks, contingencies and uncertainties.  Many factors, both known and unknown, could cause results, performance or achievements to be materially different from the results, performance or achievements that are or may be expressed or implied by such forward-looking statements. Such factors include, without limitation: development of the industry in which the Company operates; risks associated with the conduct of the Company's business activities; risks relating to reliance on the Company's management team and outside contractors; currency fluctuations; risks regarding the failure to generate sufficient cash flow from operations; laws and regulations governing the industry in which the Company operates; the ability of the communities in which the Company operates to manage and cope with the implications of COVID-19; the economic and financial implications of COVID-19 to the Company; operating or technical difficulties; employee relations, labour unrest or unavailability; stock market volatility; conflicts of interest among certain directors and officers; lack of liquidity for shareholders of the Company; litigation risk; and other risk factors disclosed in the Company's public disclosure documents available on the Company's profile at www.sedar.com. Readers are cautioned against attributing undue certainty to forward-looking statements or forward-looking information. Although the Company has attempted to identify important factors that could cause actual results to differ materially, there may be other factors that cause results not to be anticipated, estimated or intended. The Company does not intend, and does not assume any obligation, to update these forward-looking statements or information to reflect changes in assumptions or changes in circumstances or any other events affecting such statements and information other than as required by applicable laws, rules and regulations.

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SOURCE Astra Exploration Limited

FAQ

What is the significance of Astra's acquisition of the 20% interest in Pampa Paciencia?

This acquisition allows Astra to gain full control over the Pampa Paciencia project, enhancing its strategic position in Northern Chile's mining sector.

What are the terms of the purchase agreement between Astra and SQM?

Astra will acquire the 20% interest by issuing 1,455,208 common shares, valued at $174,625 based on a share price of $0.12.

What is Pampa Paciencia project and its significance?

Pampa Paciencia is a 3,840 hectare gold-silver project located near major mines in Northern Chile, representing a key asset for Astra's portfolio.

When was the purchase agreement signed?

The purchase agreement was signed on November 2, 2022.

Is the acquisition subject to any approvals?

Yes, the acquisition is subject to approval from the TSX Venture Exchange.