Battery Age Minerals (ASX:BM8) has signed a deal with Fredonia Mining (TSX-V:FRED) to earn up to 80-100% of the El Aguila Gold and Silver Project in Argentina.
El Aguila is located in the Santa Cruz Province and covers 91km2. In 2023, the province produced 680,000 ounces of gold and 15.23 million ounces of silver.
Under the two-staged farm-in agreement, Battery Age Minerals, which has a market capitalisation of $10 million, will pay US$175,000 ($281,216) in cash to Fredonia.
The company will also spend US$1.85 million on exploration within 36 months and a further US$950,000 within 48 months.
Upon Battery Age Minerals earning the 80% interest, Fredonia may either elect to form a joint venture or convert its 20% interest to a 3% net smelter royalty. If Fredonia elects to convert its interest, Battery Age Minerals can purchase half of the royalty via a US$500,000 cash payment.
CEO Nigel Broomham says securing the agreement is a milestone for Battery Age as it positions the company in one of Argentina’s most productive mining regions.
“The project’s geological setting, combined with the high-grade surface samples we’ve identified, demonstrates its tremendous potential for large-scale gold and silver mineralisation,” Broomham says.
“Our upcoming exploration activities, including detailed mapping, surface sampling, and geophysical surveys, are designed to refine our drilling targets and prepare for what we believe will be a highly impactful maiden drilling campaign.”
Pending land access and permitting, Battery Age Minerals anticipates it will begin maiden drilling in the second half of this year.
The company is currently in a trading halt ahead of the announcement of a capital raising which is due for release on 4 February 2025.
Battery Age Minerals is a battery mineral-focused explorer advancing projects in Canada, Australia, and Argentina.
This company’s existing projects include the Falcon Lake Lithium Project and the Bleiberg Germanium Project.
Write to Aaliyah Rogan at Mining.com.au
Images: Fredonia Mining
