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Austral Gold Ltd
Symbol AGLD
Shares Issued 566,070,265
Close 2021-02-25 C$ 0.215
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Austral Gold closes acquisition of 5.95M Ensign units

2021-02-25 12:26 ET - News Release

Mr. Stabro Kasaneva reports

AUSTRAL GOLD CLOSES ACQUISITION OF ENSIGN GOLD

Austral Gold Ltd.'s wholly owned subsidiary, Argentex Mining Corp., has completed its purchase of 5.95 million units in the capital of Ensign Gold Inc., a privately held Canadian company with exploration assets in the state of Utah, for an aggregate purchase price of $1,487,500 (Canadian) (approximately $1,171,260 (U.S.)) or 25 Canadian cents per unit.

Each unit consists of one Class A share in the capital of Ensign and one-half of one transferable share purchase warrant. Each warrant will entitle the holder to purchase one additional share at an exercise price of $1.50 for a period of 36 months, subject to an acceleration provision. After adjusting for this subscription, Argentex owns approximately 19.96 per cent of the issued and outstanding Ensign shares on an undiluted basis and approximately 27.22 per cent on a partially diluted basis (approximately 22.90 per cent on a fully diluted basis).

About Ensign Gold Inc.

Ensign is a privately held federally incorporated Canadian company. It is not a reporting issuer in any province of Canada, nor is it listed on any stock exchange. It is currently assembling a 5,000-hectare land package on favourable Carlin-type gold deposit geology in the state of Utah with the goal of consolidating the Mercur camp for the first time. Ensign owns 54 patented claims, 370 unpatented claims and five SITLA claims on South Mercur, West Mercur and North Mercur. Historically, this region produced over three million ounces of gold and was shut down over two decades ago when gold was selling for less than $300 per ounce.

Chief executive officer Stabro Kasaneva commented: "We are pleased to close this transaction with Ensign as this investment is consistent with our expansion plans into North America -- investing in one of the first Carlin-type discoveries, with significant exploration upside remaining at today's gold prices. The Mercur property is adjacent to the prolific Bingham Canyon mine, which has produced over 50 million ounces of gold and over 30 million tonnes of copper on the other side of the mountain range. This represents a modest investment to potentially unlock another gold opportunity for us in North America."

About Austral Gold Ltd.

Austral is a growing gold and silver mining, development and exploration company building a portfolio of quality assets in Chile, the Untied States and Argentina. Austral owns a 100-per-cent interest in the Guanaco/Amancaya mine in Chile and the Casposo mine (care and maintenance) in Argentina, and a 26.46-per-cent interest in the Rawhide mine in Nevada. In addition, Austral owns an attractive portfolio of exploration projects in the Paleocene belt in Chile (including those acquired in the recent acquisition of Revelo Resources Corp.) and a 100-per-cent interest in the Pinguino project in Santa Cruz, Argentina. Austral is listed on the TSX Venture Exchange (symbol AGLD) and the Australian Securities Exchange (symbol AGD). For more information, please consult Austral's website.

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