Patagonia Gold completes 9.4m dollar fundraise for Cap-Oeste

AIM-listed Patagonia Gold has unveiled a progress update on its Lomada de Leiva and Cap-Oeste projects in the Santa Cruz Province of Argentina.

The mining company reported that its Lomada main heap leach project was on target to achieve full operational status by late in the second quarter of 2013 with an estimated production level of 14,000 ounces of gold for the second half of 2013.

It said that it had received $3.84m from a second gold pour of 2,385 ounces of gold from the trial heap leach.

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Development construction had been fully funded to production supported by gold sales from original and extended trial heap leach.

The company also said that principal mining equipment had arrived in Buenos Aires for assembly and transport to site, with operation to begin in late March 2013.

At the Cap-Oeste/COSE project, Patagonia Gold completed a fund-raise of $9.4m in early March 2013, allowing the acceleration of drilling on the highly prospective Cap-Oeste/COSE corridor and other nearby targets.

Bill Humphries, Chief Executive Officer of Patagonia Gold, commented: "We are very pleased with our progress towards achieving self-sufficiency in 2013.

"With the proceeds from our recent fund-raising together with the income from the Lomada gold project, Patagonia Gold is able to continue with its plans to expand the resource base of its flagship Cap-Oeste/COSE project, whilst also continuing the development of its other exciting projects."

Patagonia Gold's share price was down 1.72% to 14.25p at 10:03 on Wednesday.

MF