Termination of Trilogy Option Agreement

VANCOUVER, British Columbia, Dec. 10, 2019 (GLOBE NEWSWIRE) -- Patagonia Gold Corp. (“Patagonia” or the “Company”) (TSXV: PGDC) announces the termination of its option agreement dated January 30, 2016, as amended, with Trilogy Mining Corporation (“Trilogy”), American Mining Holdings Ltd., Ecovent S.A. and Minerales Cala S.A. (the “Option Agreement”).

Pursuant to the Option Agreement, Patagonia was granted the right to earn up to an 80% interest to Trilogy’s San José advanced gold project in Uruguay.  However, Patagonia has elected to discontinue funding under the Option Agreement and focus on the development of the Cap Oeste underground project and advancement of Calcatreu.

Patagonia will pay Trilogy an amount of US$50,000 to terminate the Option Agreement and in exchange will receive common shares of Trilogy, that will result in Patagonia owning 42.5% of the then issued and outstanding shares of Trilogy.

About Patagonia Gold

Patagonia Gold Corp. is a mining and development company listed on the TSX Venture Exchange. The Company seeks to grow shareholder value through exploration and development of gold and silver projects in the Patagonia region of Argentina. The Company is primarily focused on the Calcatreu project in Rio Negro and the development of the Cap-Oeste underground project. Patagonia, indirectly through its subsidiaries or under option agreements, has mineral rights to over 350 properties in several provinces of Argentina and Chile and is one of the largest landholders in the province of Santa Cruz, Argentina.

For more information, please contact:

Dean Stuart
T: 403 617 7609
E: [e-mail]

Christopher van Tienhoven, Chief Executive Officer
Patagonia Gold Corp
T: [phone]
E: [e-mail]

FORWARD-LOOKING STATEMENTS

This news release contains certain forward-looking statements, including, but not limited to, statements about the Company’s focus on growing shareholder value and the development of the Cap Oeste underground project, advancement of the Calcatreu project, payments to be made to Trilogy  and the Company’s future plans and intentions. Wherever possible, words such as “may”, “will”, “should”, “could”, “expect”, “plan”, “intend”, “anticipate”, “believe”, “estimate”, “predict” or “potential” or the negative or other variations of these words, or similar words or phrases, have been used to identify these forward-looking statements. These statements reflect management’s current beliefs and are based on information currently available to management as at the date hereof.

Forward-looking statements involve significant risk, uncertainties and assumptions. Many factors could cause actual results, performance or achievements to differ materially from the results discussed or implied in the forward-looking statements. These factors should be considered carefully and readers should not place undue reliance on the forward-looking statements. Although the forward-looking statements contained in this news release are based upon what management believes to be reasonable assumptions, the Company cannot assure readers that actual results will be consistent with these forward-looking statements. These forward- looking statements are made as of the date of this news release, and the Company assumes no obligation to update or revise them to reflect new events or circumstances, except as required by law.

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