Established gold producer Austral Gold Limited’s (Austral or the Company) (ASX: AGD; TSX-V: AGLD) subsidiary, AGNA, has agreed to provide US$555,000 bridge funding to the Rawhide Mine in Nevada, and acquired a takeover option under an agreement with Rawhide Acquisition Holding LLC (“RAH”), the RAH unit owners and the Rawhide lenders (the “Lenders”).

AGREEMENT HIGHLIGHTS

Austral Gold’s subsidiary Austral Gold North America Corp (“AGNA”) to provide US$555,000 bridge funding to the Rawhide Mine in Nevada, a fully permitted operation that produces gold and silver through an open pit heap leaching operation.

AGNA to perform a due diligence on the mine, in which it already owns a 24.74% interest.

AGNA has an option to take an approximate 99.98% stake in the mine and assume controlling ownership upon completion of due diligence by 29 May 2023.

Rawhide’s existing financial debt of approximately US$18.5 million to be restructured.

AGNA has invested a total of US$6.4 million in Rawhide since 2019 as part of its corporate strategy to expand its footprint in North America through equity investments.