Director Marc Sale explains how the company is utilizing the management team’s previous gold mining successes to explore exciting new properties.
Written by James Hurley and Produced by Alex Smith
Patagonia Gold has its origins in HPD Exploration Plc, initially formed as a wholly owned subsidiary of international mining company Brancote Holdings Plc that was set up to hold exploration projects predominantly in Argentina but also included areas in Canada and New Zealand.
Brancote Holdings was acquired by Meridian Gold Inc. in July 2002, and the following year HPD changed its name to Patagonia Gold and the company’s management team focused their attention on developing HPD's assets in Argentina. A crucial step in this process came with an AIM flotation in 2003, raising an initial £2 million to fund concentrated exploration in the Patagonia region of South America.
The company is based in Buenos Aires and London, with principle exploration office in Esquel, in the southern Patagonia region and regional exploration bases in San Juan, Santa Cruz and a new base in Perito Moreno which is used for field operations.
The exploration principle
The previous successes of Patagonia Gold’s management team provide an excellent example of the principle that an exploration company can be very successful without ever actually producing anything.
“Most exploration companies are listed on an exchange that gives them the opportunity to raise funds for exploration. In our case, we can go to the AIM market with a prospect to raise money,” says Patagonia Gold’s Operations and Non Executive Director Marc Sale.
“We can use that money to enhance a prospect, which of course would increase our share price. We’re in a speculative role, without necessarily producing an end product; you can be a very successful exploration company and never reach a mining situation, despite the intention being real.”
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