Patagonia said it had increased a US$15 million loan facility, announced in March from a company controlled by its non-executive chairman and majority shareholder Carlos Miguens,  to $15.5 million "to provide additional headroom" during this period.

The South America-focused company had ended 2018 in the red and announced it would close its Cap Oeste and Lomada de Leiva mines in Santa Cruz, Argentina, in February.  

Hunt's flagship gold-silver Martha operation is also in Santa Cruz and the company recently shored up plans for a second mining operation in the province.
  
The pair announced the agreed RTO last month, with Hunt to be renamed Patagonia Gold and become a tier 2 mining issuer on the TSX Venture Exchange.

Patagonia shareholders are expected to hold about 80% of the resulting issuer.

Hunt's largest shareholder, chairman and CEO Tim Hunt, gave written consent for the acquisition of about 83% of the issued share capital he controlled, Patagonia said.

Patagonia said the share-for-share exchange offer, of about 10.76 new Hunt shares in exchange for each scheme share, attributed an implied value of £17.18 million (US$21.6 million) to Patagonia and a 76.7% premium to the volume weighted average price per Patagonia share over the three months to May 30.

Miguens and Tim Hunt have said the combination would offer synergies and provide a strong platform for growth.