Patagonia Gold Corp. has relinquished an 80% interest in its La Manchuria gold and silver property in Argentina after Astra Exploration Inc. completed more than US$3.0 million in exploration and development expenditures.

Astra exercised its first earn-in option on August 11, 2026, following the conclusion of the funding threshold set under the July 2024 option agreement. Patagonia Gold retains a 20% interest in the asset.

The companies are now establishing a jointly owned Argentine mining company, NewCo, to hold the La Manchuria property and additional mining claims within the agreed area of interest. Once asset transfers are finalized, Astra will hold an 80% stake and Patagonia Gold will hold 20%.

“Astra’s exercise of the First Earn-In at La Manchuria represents another important step in Patagonia’s strategy of maximizing the value of its project portfolio through strategic partnerships, while retaining meaningful exposure to the future upside of these assets.

“This approach allows projects within our portfolio to be advanced through third-party investment and expertise while preserving significant potential value for Patagonia’s shareholders. It is consistent with the strategy we have pursued across our portfolio, including at the Tornado and Huracán project in Santa Cruz which are under an option agreement with Newmont 1 , while allowing the Company to remain focused on advancing its core projects.”

— Christopher van Tienhoven, Chief Executive Officer

La Manchuria covers over 5,600 hectares within the Deseado Massif geological region of Santa Cruz Province, hosting known gold and silver mineralization. Under the transaction terms, Patagonia Gold's 20% interest remains carried until a technical report prepared under National Instrument 43-101 defines at least one million gold equivalent ounces in inferred or indicated mineral resources. Following that milestone, both parties will fund ongoing expenditures in proportion to their ownership in NewCo.

Astra maintains the right to acquire an additional 10% interest, lifting its stake to 90% and reducing Patagonia Gold's holding to 10%, by making a US$5.0 million cash payment within two years of completing the first earn-in. If either company's stake falls below 10%, that interest automatically converts into a 1% net smelter return royalty.

Read the full announcement: Patagonia Gold Announces Astra’s Exercise of Earn-In Option at La Manchuria