08:38 AM EDT, 07/09/2024 (MT Newswires) -- Patagonia Gold Corp. ( HGLD ) entered Tuesday into a binding letter agreement with Astra Exploration Inc. ( ATEPF ) .

According to a statement, the Option Agreement grants Astra an option to earn up to a 90% undivided interest in the company's La Manchuria property in return for spending at least US$3 million on the property and making a cash payment of US$5 million.

Among highlights in a summary of terms, if either party's interest is diluted below 10%, such interest will be converted to a 1% NSR royalty.

Tuesday's statement noted the property is the +5,600 hectare-sized, gold and silver property owned by Patagonia Gold S.A., a subsidiary of the company. The property is located within the prospective and permissive Deseado Massif geologic region of the Santa Cruz Province of southern Argentina. As disclosed in the Technical Report, the property has a mineral resource of 474 thousand tonnes of indicated mineral resources grading 2.59 grams per tonne (g/t) of gold and 129 g/t of silver and a further 1.84 million tonnes of inferred mineral resources grading 1.3 g/t of gold and 40 g/t of silver.