Patagonia Gold Secures $40M Boost for Calcatreu Mine in Argentina

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Patagonia Gold Corp. has secured a $40 million investment to advance its flagship Calcatreu gold-silver project in Argentina’s Río Negro province. The capital injection comes through a newly formed entity called Black River Mine, controlled by Argentine businessman and Patagonia Gold director Carlos J. Miguens. The deal marks a turning point for the company, which has been working steadily to move Calcatreu into production since acquiring it from Pan American Silver in 2018.

Under the agreement, Black River will acquire 40 million preferred shares in Patagonia Gold’s subsidiary that holds the Calcatreu project. In return, the investment vehicle will gain a 40 percent interest in the project along with rights to cash distributions from future operations. This structure allows Patagonia Gold to maintain control of the asset while accelerating development.

Calcatreu’s gold and silver reserves position it as a high-potential mine

The Calcatreu project is located about 85 kilometers south of Ingeniero Jacobacci in central Argentina. The deposit is a low-sulfidation epithermal system, known for its high-grade characteristics and relatively straightforward metallurgy—attributes that appeal to both investors and operators.

The site holds more than 1 million ounces of gold-equivalent resources, including 746,000 ounces in the measured and indicated categories. Patagonia Gold’s strategy for Calcatreu involves using heap leaching, a cost-effective processing method that the company has experience deploying in other parts of Argentina.

The company received the final provincial permits to begin construction in November 2024. Early-stage work such as road building and infrastructure setup began in early 2025, with a production start date targeted for 2026. With financing secured and development underway, Calcatreu is positioned to become one of Patagonia’s cornerstone operations.

Carlos Miguens’ involvement strengthens investor confidence

The financial architecture behind the deal hinges on the involvement of Carlos J. Miguens, a seasoned investor and major shareholder in Patagonia Gold with a 43.2 percent equity stake. His backing through Black River Mine not only provides capital but also reinforces credibility among institutional and retail investors.

Miguens has held leadership roles across some of Argentina’s most prominent mining and beverage companies. His decision to anchor the investment signals a strong belief in both Calcatreu’s potential and Argentina’s broader mining prospects. From a market standpoint, this could attract further capital to the company as production milestones draw closer.

Argentina’s broader mining sector sees increased investment activity

Calcatreu’s advancement also reflects broader momentum in Argentina’s mining sector. The country attracted $493.4 million in exploration spending in 2024, a 15.7 percent increase over the previous year. This ranked Argentina sixth globally for exploration investment.

Policy changes are also playing a role. The government introduced the Régimen de Incentivo para Grandes Inversiones (RIGI) in 2024 to offer long-term tax and customs incentives to large-scale projects. These measures are part of President Javier Milei’s economic reform program, which places strategic emphasis on the mining and energy sectors.

At least 11 large-scale energy and mining projects are now in the pipeline, with the goal of increasing annual mineral exports from $4 billion to $13 billion. That level of ambition could reshape the sector and strengthen its role in Argentina’s economic future.

The announcement of the $40 million investment drove Patagonia Gold’s share price up 43 percent to C$0.50, hitting a new 52-week high and boosting its market capitalization to $23.2 million. The sharp rise suggests investor confidence in both the project and the company’s strategic direction.

With funding and permits secured, Patagonia Gold now shifts focus to execution. Construction is underway, and production is expected in 2026. If timelines hold, Calcatreu will become a key contributor to the company’s portfolio and a tangible example of how mid-tier miners can navigate and thrive in Argentina’s evolving mining landscape.

Sources:

• Gov Capital
• Patagonia Gold