Patagonia Gold Regulatory News (PGD)

23 Dec 2005 12:00

Patagonia Gold PLC23 December 2005 PATAGONIA GOLD PLC Trading Symbol PGD.L PRESS RELEASE PRESS RELEASE PRESS RELEASE PRESS RELEASE 23 December 2005 PATAGONIA GOLD PLC ANNOUNCES THE DISPOSAL OF HPD NEW ZEALAND LIMITED (HPDNZ) TO GLASS EARTH LIMITED (TSXV-GEL) (GLASS EARTH) Patagonia Gold Plc is pleased to announce the disposal of HPDNZ to Glass Earth.On 22 December 2005 an agreement was reached for Glass Earth to acquire all theissued and outstanding shares of HPD NZ which are held by the Company's whollyowned subsidiary, HPD Investments Limited. The consideration payable by GlassEarth will be 12,665,000 common shares and 6,332,500 share warrants with astrike price of $0.25 for a period of 2 years. HPDNZ has a total of 22 Exploration and Prospecting Permits covering over 4,724square kilometres in both the North and South Islands of New Zealand. The NorthIsland Exploration and Prospecting Permits are contiguous and adjacent to GlassEarth's existing property interests and contain numerous epithermal gold targetswith a Waihi "Martha Mine" style of mineralization which has been identified byGlass Earth as part of its exploration activities over the last 2 years. TheseNorth Island HPD Exploration and Prospecting permits are a strategicallyimportant fit with the Glass Earth properties. The South Island Exploration andProspecting Permits are no less prospective and are generally for mesothermalshear hosted gold targets which exhibit "Macrae Deposit" type signatures. An important feature of this transaction is that Marc Sale will continue asExploration Director of HPDNZ. Marc will also be joining the Board of GlassEarth and will be part of the New Zealand based Glass Earth exploration team. The transaction is subject to regulatory approval , to be obtained by GlassEarth, and is expected to close no later than 31 March 2006. ENDS For more information, please contact: Richard Prickett / Bill Humphries Anthony Cardew/Tim RobertsonPatagonia Gold Plc Tel: +44 (0) 20 7930 0777Tel: + 44 (0)20 7409 7444 Fax: +44 (0) 20 7925 0647www.patagoniagold.com Email: tim.robertson@cardewgroup.comTrading Symbol PGD.L This information is provided by RNS The company news service from the London Stock Exchange