Patagonia Gold First Quarter 2020 Financial Results

VANCOUVER, British Columbia, July 14, 2020 (GLOBE NEWSWIRE) -- Patagonia Gold Corp. (“Patagonia” or the “Company”) (TSXV: PGDC) is pleased to announce its unaudited results for the fiscal period ended March 31, 2020 (“Q1 2020”).  The financial statements together with the management’s discussion and analysis (“MD&A”) are available on the Company’s website and on SEDAR at www.sedar.com.

Highlights

• Revenue of US $5.22 million and gross profit of US $2.77 million in Q1 2020.
• Total production of 1,937 gold ounces and 41,377 silver ounces in Q1 2020.
• Requested quotations for potential construction of underground mine at Cap-Oeste gold / silver project and successfully completed bulk metallurgical tests at the Martha process plant located 100 km south east of Cap-Oeste.
• Received regulatory approval for Normal Course Issuer Bid to re-purchase up to 15,897,199 common shares.
• Extended agreement with Latin Metals Inc. for the proposed acquisition of the Mina Angela project. Definitive agreement expected to be signed by September 12, 2020.
• Optimized and reduced costs for operations in Santa Cruz Province of Argentina through the merger of subsidiaries Patagonia Gold SA (PGSA) and Cerro Cazador SA (CCSA) into one legal entity and reduced provincial government interest to 5%.
• Initiated RAB drill campaign and channel sampling program at Calcatreu gold / silver project in Rio Negro province to test new geophysical targets, which are expected to expand the existing mineral resources in ore shoots that remain open down-plunge.

Christopher van Tienhoven, CEO commented: “Patagonia continues to generate cash flow from its residual heap leach operations at Lomada and Cap-Oeste while remaining focused on the development of, and ultimately putting Cap-Oeste into production with processing at the Martha plant.  Despite the COVID19 pandemic, the Company is using all of its efforts to mitigate the effects on its operations and is working with stakeholders to provide support as much as possible.”

In addition, in accordance with BC Instrument 51-516 - Temporary Exemptions from Certain Requirements to File or Send Securityholder Materials of the British Columbia Securities Commission, the Company has delayed the public filing of its executive compensation disclosure. The Company will file such disclosure in the management information circular in respect of its next annual general meeting of shareholders.