Austral Gold Limited recently announced that their newly-formed Nevada subsidiary, Austral Gold North America Corp. has acquired an equity interest in Rawhide Acquisition Holding LLC, a company which owns Rawhide Mining LLC who owns Rawhide Mine located in Mineral County.
Rawhide is a fully permitted operation that produces gold and silver through open pit heap leaching. In 2019, Rawhide received a mine expansion permit associated with Regent open pit.
The transaction allowed Austral Gold North America Corp to make an initial purchase of 22.48 percent directly from Rawhide for the purchase price of $3,957,406. The company paid $2,000,000 in cash at closing.
“The initial purchase is to be funded primarily from Austral’s existing cash reserves. In addition, AGNA has entered into three option agreements with three existing Unit owners pursuant to which it has the option to purchase up to an additional 3.795 percent of the issued and outstanding Rawhide Units for an aggregate purchase price of US $750,813 until they expire at various dates during the first six months of 2020,” the release explained.
Located in the Walker Lane structural zone, Rawhide is a historical mining operation that started in the early 1900’s. The Walker Lane zone is “one of the most prolific gold mining districts in the world” according to the release and is surrounded by 1.0 million plus gold ounce deposits.