VANCOUVER - Pampa Metals Corp. ('Pampa Metals' or the 'Company')(CSE: PM) (FSE: FIRA) (OTCQX: PMMCF) is pleased to announce that further to the news release of April 14, 2021 it has completed the formal documentation with Austral Gold Ltd., whereby Austral has been granted an option to acquire in stages up to an 80% joint venture interest in Pampa Metals' Cerro Blanco and Morros Blancos properties in exchange for certain cash payments, exploration expenditures and the cancellation of 2,963,132 shares of Pampa Metals held by Austral's wholly-owned subsidiary, Revelo Resources Corp.
The formal documentation (the 'Agreement') consists of the Definitive Option and Joint Venture Agreement, a Shareholders' Agreement in the event the Option is exercised, and an Exploration Deed that enables enforcement of the Agreement in Chile.
Highlights of the Agreement are: Cancelation of 2,963,132 of the Company's shares representing the return to treasury of more than 6% of the issued and outstanding share capital; Austral incurring Exploration Expenditures of at least $1 million in year 1 and $2 million in year 2; Austral being required to complete a bankable feasibility study to earn an 80% interest in either or both properties. If studies indicate that copper is the most valuable commodity instead of gold and silver, Pampa Metals can earn back an 80% interest under the same terms and conditions as those for Austral.
Julian Bavin, CEO of Pampa Metals, commented: 'We are extremely pleased to have signed this Agreement with Austral, which brings great experience in gold exploration to our Cerro Blanco and Morros Blancos Properties. Through this transaction we are also returning to our treasury a significant number of shares that will better position the Company when additional capital is required. The transaction also ensures that more projects within Pampa Metals' portfolio will be advanced rapidly and efficiently, allowing the Company to direct its treasury towards other projects within its 100% owned portfolio.' And he continued: 'In addition, the close proximity of our Cerro Blanco and Morros Blancos projects to Austral's operating mines and processing operations in Chile provide enhanced optionality to Pampa Metals and, subject to exploration and development success, future real value returns to our shareholders.'
Stabro Kasaneva, CEO of Austral, commented: 'We are excited to have signed this Agreement with Pampa Metals which provides exploration upside and future development optionality for our existing mines in the district.'
Austral Gold Ltd. is a growing gold and silver mining producer. Over the last few years, Austral Gold has successfully built a portfolio of assets in the Americas (Chile, Argentina, and United States) and is dual-listed on the Australian Securities Exchange (ASX:AGD) and the Toronto Venture Exchange (TSXV:AGLD). The Group's flagship asset is the Guanaco/Amancaya gold and silver mine complex in Chile. Other mining interests include the Casposo Mine in Argentina (100%), a non-controlling interest in the Rawhide Mine in the USA, and an attractive portfolio of exploration projects in Argentina and Chile.
About the Agreement
Pampa Metals' Cerro Blanco and Morros Blancos projects are located within 50 Km to 60 Km from Austral's flagship gold-silver mine and processing facilities at Guanaco in northern Chile, and Morros Blancos is additionally located adjacent to Austral's Amancaya gold-silver mine, which provides additional feed to the Guanaco plant.
The 6,500-hectare Cerro Blanco and 7,300-hectare Morros Blancos projects are two of the three 'lithocap' projects within the Company's 8 project exploration portfolio. Lithocap targets geologically represent the upper portions of potential porphyry copper systems, and often have significant precious metals potential. Historic results to date at both projects suggest good potential for near surface gold-silver mineralization possibly associated with deeper copper mineralization.
As a result of the Company's primary focus on copper and desire to advance its portfolio as rapidly and efficiently as possible, it is open to third party investment in some key projects, including this transaction with Austral.
About Cerro Blanco & Morros Blancos
Both the Cerro Blanco (6,500 Ha) and the Morros Blancos (7,300 Ha) Properties are prospective for high-sulphidation epithermal gold-silver (+/- copper) and porphyry copper (+/- gold +/-moly) deposits and are located in the heart of the Paleocene Mineral Belt in northern Chile. The Paleocene Belt is host to important gold-silver and copper deposits and mines, and the Properties are located along a prolific segment of the prospective belt, along trend from important precious metals mines and projects. Cerro Blanco is located about 20 Km south-southwest of the multi-million ounce El Penon gold-silver mining district (Yamana Gold) and Morros Blancos is located adjacent and to the east of Austral's Amancaya gold-silver mine. Access to both projects is easy, both being located less than 30 Km from the Pan American Highway, and altitudes are moderate. Both projects lie within potential operational distance of Austral's Guanaco processing plant, which could allow for more efficient and cost-effective development and operation.
ABOUT PAMPA METALS
Pampa Metals is a Canadian company listed on the Canadian Stock Exchange (CSE: PM) as well as the Frankfurt (FSE:FIRA) and OTC (OTCQX:PMMCF) exchanges. Pampa Metals owns a highly prospective 59,000-hectare portfolio of eight projects for copper and gold located along proven mineral belts in Chile, one of the world's top mining jurisdictions. The Company has a vision to create value for shareholders and all other stakeholders by making a major copper discovery along the prime mineral belts of Chile, using the best geological and technological methods.
Contact:
Ioannis (Yannis) Tsitos
Email: investors@pampametals.com
Web: www.pampametals.com
FORWARD-LOOKING STATEMENTS
This news release contains certain statements that may be deemed 'forward-looking statements'. All statements in this release, other than statements of historical fact, that address events or developments that Pampa Metals expects to occur, are forward-looking statements. Forward-looking statements are statements that are not historical facts and are generally, but not always, identified by the words 'expects', 'plans', 'anticipates', 'believes', 'intends', 'estimates', 'projects', 'potential', 'indicate' and similar expressions, or that events or conditions 'will', 'would', 'may', 'could' or 'should' occur. Although Pampa Metals believes the expectations expressed in such forward-looking statements are based on reasonable assumptions, such statements are not guaranteeing of future performance and actual results may differ materially from those in forward-looking statements.
AUSTRAL GOLD LIMITED 
