Patagonia Gold Boosts Financial Flexibility with Cantomi Loan Increase

Patagonia Gold Corp. (TSXV: PGDC) has announced a significant boost to its financial flexibility and liquidity with the increase of its loan facility with Cantomi Capital Ltd. (Cantomi). The loan facility has been increased to US$45 million, with a maturity date extended to December 31, 2026. This move allows Patagonia Gold to continue its exploration and development activities, while also providing the company with more time to secure alternative financing arrangements.

The increased loan facility will primarily be used to make downpayments for long lead time items required for the development of the Calcatreu project, as well as for general working capital purposes. This strategic decision enables Patagonia Gold to advance the Calcatreu project, which is one of its two advanced-stage projects, without the immediate pressure of repaying the loan. The extended maturity date also provides the company with more time to explore alternative financing options, such as equity financing or project financing, to support the development of the Calcatreu project and other growth initiatives.

Patagonia Gold's Chief Executive Officer, Christopher van Tienhoven, stated that the increased loan facility from Cantomi Capital Ltd. provides the company with the necessary financial flexibility and liquidity to continue its operations and invest in its projects. The funds from the increased loan facility will be used to make downpayments for long lead time items required for the development of the Calcatreu project until alternate financing is arranged and for general working capital purposes.

The Calcatreu project is one of Patagonia Gold's two advanced-stage projects, and the company is focused on its development. By using the funds to make downpayments for long lead items, Patagonia Gold is advancing the project towards production, which is a key driver of shareholder value. The increased loan facility also provides Patagonia Gold with the necessary working capital to maintain its operations and exploration activities while seeking alternative financing options.

In conclusion, the increase in the loan facility from Cantomi Capital Ltd. is a strategic move that enhances Patagonia Gold's financial flexibility and liquidity, allowing the company to continue its exploration and development activities, advance the Calcatreu project, and secure its long-term future. This decision aligns with Patagonia Gold's overall growth strategy and demonstrates the company's commitment to creating shareholder value.