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19 Nov 2014

Stephenson Harwood advises on Patagonia Gold's $13.7 million fundraising and city code whitewash

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International law firm Stephenson Harwood LLP has advised Patagonia Gold Plc (Patagonia Gold), on its proposal to raise up to approximately $13.7 million by the way of an issue of up to 193,963,930 new shares at a price of 4.5 pence per share. The fundraising has been structured by way of a subscription and an open offer to existing shareholders and is conditional upon the approval of the independent shareholders in respect of the participation in the fundraising by an existing concert party (in accordance with the whitewash requirements of the Takeover Code).

Patagonia Gold is a mining company that seeks to grow shareholder value through exploration, development and production of gold and silver projects in the southern Patagonia region of Argentina. The company is headquartered in London, England with subsidiary offices in Buenos Aires. The fundraising will allow Patagonia Gold to accelerate the development of the Cap-Oeste heap leach project which on completion will expand annual production to approximately 83,000 ounces of gold equivalent. In addition a portion of the raised funds will be used to explore and drill the numerous prospects within trucking distance of the project.

Stephenson Harwood provided legal advice to Patagonia Gold on all aspects to do with the subscription and open offer, including discussions with the Takeover Panel in connection with the whitewash waiver.

Commenting on Patagonia Gold's fundraising, Tom Nicholls, partner in the corporate finance group at Stephenson Harwood, said "We are delighted to have advised Patagonia Gold on this fundraising at a time when raising funds for mining companies remains very challenging. The raised funds will allow the company to significantly expand its existing production as well as to invest in exploration and further exciting long term growth opportunities."

The Stephenson Harwood team was led by corporate finance partner Tom Nicholls. He was assisted by corporate associates Luwisha Neskovic, Matthew Peters and trainee Michelle Gomes. Stephenson Harwood will host Patagonia Gold's general meeting in its offices in December 2014.

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Tom Nicholls

Tom Nicholls
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