South America focussed precious metals mining, development and exploration company Austral Gold Limited (TSXV:AGLD/ASX:AGD) has completed its acquisition of the historic Rawhide gold mine in Nevada.
The deal to acquire Rawhide Acquisition Holding LLC (RWH) was finalised through its newly-formed Nevada subsidiary, Austral Gold North America Corp (AGNA)
AGNA has acquired an equity interest in RWH, a privately-held Delaware limited liability company that owns Rawhide Mining LLC which in turn owns the Rawhide Mine located approximately 50 miles outside of Fallon, Nevada.
Austral Gold’s Chief Executive Officer Stabro Kasaneva said Rawhide is a historical mining operation that started in the early 1900s located in the Walker Lane structural zone, one of the most prolific gold mining districts in the world, and is located 50 miles from Fallon. It is surrounded by multiple 1.0 million+ gold oz deposits.
The mine is a fully permitted operation that produces gold and silver through an open pit heap leaching operation. In 2019, Rawhide received a mine expansion permit associated with the Regent open pit.
Rawhide was formerly operated as a subsidiary of Kennecott Corp. prior to Coral Reef Capital partnering with the Rawhide mine management team to acquire the property from Rio Tinto Plc in 2010. Coral Reef Capital is the controlling shareholder.
“I believe Rawhide is a project with considerable unlocked value and this investment presents an excellent entry point into the North American mining sector backed by experienced and proven operators who have worked at major mining companies including Rio Tinto and Argonaut Gold Inc.,” Mr Kasaneva said.
“Nevada, is one of the world’s preeminent mining locations and there is room for future growth. We are confident that we can leverage our experience from our mines to benefit the operations at Rawhide, which has an open pit mining operation and heap leaching process.
“The mining district and land package controlled by Rawhide is large and we believe there is potential to considerably increase the mineral inventory.”
Rawhide’s Director Marceau Schlumberger said the experience of the Austral team combined with Rawhide management provides the necessary skill set to complete the production ramp up and fully optimize the operational and exploration potential of Rawhide.