08:18 AM EDT, 04/02/2025 (MT Newswires) -- Patagonia Gold ( HGLD ) said on Wednesday that it signed a binding agreement granting Newmont ( NEM ) a six-year option to acquire the Tornado and Huracan gold-silver properties in Argentina for US$1.5 million.

The properties are located near Newmont's ( NEM ) Cerro Negro mine. The transaction also includes the El Diablo exploration permit.

"Newmont ( NEM ) is the right candidate to take on the properties to explore and develop their potential," said Christopher van Tienhoven, CEO of Patagonia.

Patagonia said the sale allows the company to focus on developing the Calcatreu property. It is also looking at alternatives for the development of the Cap Oeste underground project.

"The company continues to streamline its large property portfolio and evaluating further joint venture engagements and potential disposal of non-strategic properties," van Tienhoven said.