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