​Gold miner acquires Chile mining contractor

Austral Gold has acquired a controlling stake in underground
mining contract Humberto Reyes Arriendo de Maquinarias.

Operating through its subsidiary Guanaco, is has acquired a
51 per cent holding in Humberto for approximately US$2.7 million.

It also has an option to acquire the remaining 49 per cent
in two and half years at a price to later be agreed upon.

Humberto has been working at Australia’s underground Guanaco
mine since 2011.

According to Austral the acquisition of this company “is a
strategic investment for [Austral] since it provides flexibility to accelerate
mining of the Guanaco mine resource; allows greater control over safety and production
practice at the mine; ensures competitive costs for underground development;
and gives management greater overall control over the mine’s operations”.

“This transaction is a pleasing development for Austral Gold
and represents key strategic investment in the further development of our
flagship Guanaco project,” Austral Gold director Stabro Kasaneva said.

Chile has recently been touted as the entry way for Australian miners looking to operate in South America.

CSIRO Minerals Down Under
Flagship director Jonathon Law spoke at the Sydney Latin America Down Under
Conference last week, outlining common challenges facing the Australian and
Latin American minerals industries in Chile, and the ways the two countries are
working together.

“Latin America and Australia
are natural partners around innovation in the mining industry,” Law said.

Australian engineering firm
Austin Engineering has also been extremely active in Chile, winning multiple contracts in the country

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