Austral Gold (ASX:AGD) has settled the final tranche of its investment in Goldrock Mine Corp (TSX-V: GRM) with a further 9,248,000 shares in Goldrock being issued to Austral Gold for C$7.4 million.
Austral Gold now holds 11,560,000 shares in Goldrock representing a 15% stake, for a total consideration of C$9.3million.
Austral Gold also receives one warrant per share exercisable at C$0.80 each until 24 October 2018.
In addition, Austral has also appointed a non-executive director to Goldrock’s Board, and Austral's CEO will join Goldrock’s technical committee.
Goldrock holds 100% of the Lindero gold project in northwest Argentina, with proven reserves of 641,000 gold ounces and probable reserves of 878,000 gold ounces at 0.66 to 0.82 grams per tonne gold, and is capitalised at C$29 million.
Austral Gold financed this investment via free cash flow generated from its Guanaco Gold mine in Chile.
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