Patagonia Gold Announces Astra's Exercise of Earn-In Option at La Manchuria

Astra Exploration Inc. has exercised its first earn-in option, acquiring an 80% interest in the La Manchuria gold and silver property in Argentina. The transaction was triggered by Astra completing exploration and development expenditures exceeding US$3.0 million on the property. A new Argentine mining company, referred to as NewCo, will be established to hold the assets, with Astra owning 80% and Patagonia Gold Corp. retaining 20%.

Astra holds a further option to acquire an additional 10%, bringing its total ownership to 90%, by paying Patagonia Gold Corp. US$5.0 million in cash within two years. If either party's interest is diluted below 10%, it converts into a 1% net smelter return (NSR) royalty. Patagonia Gold Corp.'s retained 20% interest will be carried until a NI 43-101 technical report defines at least one million gold equivalent ounces (AuEq) in inferred, indicated, or combined categories.

Patagonia Gold Corp. CEO Christopher van Tienhoven described the move as consistent with the company's strategy of leveraging third-party capital while preserving upside exposure, mirroring the Newmont option on Tornado and Huracán.

Patagonia Gold Corp. (PGDC) has entered into a strategic joint venture and exercised an option, marking a development in exploration rather than a production or cost update. The arrangement brings in a partner to fund future exploration activities, avoiding immediate equity dilution to Patagonia shareholders beyond the pre-agreed 20% retained stake.

The transaction does not alter near-term cash flows, production profiles, or balance sheet liquidity. Because the option was already in place and the $3.0 million spend threshold was a known trigger, the market likely priced this event in. The move is viewed as positive for portfolio advancement but routine in execution.

Patagonia Gold Corp. (TSXV: PGDC) is a Canada-based, Argentina-focused mining company transitioning from exploration to early-stage production. Its flagship assets include Calcatreu in Rio Negro, which is currently undergoing heap-leach ramp-up, and Cap-Oeste in Santa Cruz, a producing asset in residual decline. The company maintains a portfolio of exploration-stage projects, including La Manchuria, La Josefina, Tornado, and Huracán, leveraging strategic partnerships to advance them. Additionally, the Lomada de Leiva project is in closure, while Martha sits on care and maintenance.