05:05 PM EDT, 07/26/2024 (MT Newswires) -- Patagonia Gold Corp. ( HGLD ) said after trade Friday it entered into an agreement with Cantomi Uruguay S.A. to increase the maximum aggregate amount of the Cantomi Loan.

According to a statement, the original loan facility, which Cantomi provided in February 2019 for US$15 million was subsequently amended and further increased to US$33 million with a maturity date of December 31, 2025. The agreement amending the Cantomi Loan provides that the maximum aggregate amount of the Cantomi Loan is increased to US$35 million.

Friday's statement said the funds from the increased Cantomi Loan will be used to refinance existing lines of credit to reduce interest costs and for general working capital purposes. Other than the amendment to increase the maximum amount of the Cantomi Loan, all other terms of the Cantomi Loan remain unchanged.