Welcome To The Argonaut Gold Inc. HUB On AGORACOM

"Friendly aquisition" of Prodigy Gold (Oct. 2012) / > 100k ounces in 2012

Free
Message: Argonaut Gold Announces the Acquisition of the Cerro del Gallo Project in Guanajuato, Mexico for US$15 million

Ron,

Having difficulty reading your post.  Hope this helps.

Argonaut Gold Announces the Acquisition of the Cerro del Gallo Project in Guanajuato, Mexico for US$15 million

November 14, 2017

All dollar amounts are expressed in US dollars, unless otherwise specified 

Toronto, Ontario - (November 14, 2017) Argonaut Gold Inc. (TSX: AR) (the “Company”, “Argonaut Gold” or “Argonaut”) is pleased to announce its has reached an agreement with Primero Mining Corp. (“Primero”) whereby it will acquire the Cerro del Gallo project (“CDG” or the “Project”) through the purchase of all of the issued and outstanding shares of the Primero subsidiary San Anton Resource Corporation for cash consideration of $15 million, which is payable upon closing. Argonaut expects to be able to recover approximately $1.7 million of value added tax, which reduces the total purchase price to $13.3 million. The Company expects the transaction to close on or before November 30, 2017.

Pete Dougherty, President & CEO stated: “We view the acquisition of the CDG as a low risk, high reward investment for Argonaut shareholders. CDG is a project in our own backyard where we have the ability to leverage our existing operations and projects team’s skill sets. We view CDG as a pipeline project that fits well within our portfolio of Mexican assets. This acquisition is an opportunity to acquire a project within a well-known jurisdiction with known mineral reserves, upside resource potential, excellent infrastructure and at a reasonable investment. With $37 million in cash at September 30, 2017, projected cash flow from operations and an undrawn $30 million corporate revolver, Argonaut will remain in a strong financial position after completing the transaction.”

About CDG

The CDG deposit is located in the state of Guanajuato in central Mexico, approximately 270 kilometres northwest of Mexico City in an active mining district. The property is accessible by road, rail and air services. Additionally, there is availability of a skilled local workforce, grid power, water, sealed roads, equipment suppliers and established transport routes.

A Definitive Feasibility Study (“DFS”) for CDG was completed in May 2012. The DFS outlines an initial 7.2 year mine life, which could be extended to 14 years through a Second Stage Carbon-in-Leach (CIL)/Heap Leach mill expansion. The Project has been planned as conventional open-pit truck and shovel operation coupled with a 4.5 million tonne per annum processing plant. The flow sheet design is broadly based upon a conventional cyanide heap leach and gold on carbon recovery technologies but will incorporate a SART processing stage to facilitate copper removal prior to gold recovery. The plant design is based on the treatment of both fully and partially oxidised ores, producing an average of 95,000 ounces of gold equivalent annually at estimated cash costs of $700/oz.

For more information on CDG, please see the National Instrument 43-101 Technical Report dated June 29, 2012 (effective May 11, 2012) and available at www.primeromining.com or at www.sedar.com.

Share
New Message
Please login to post a reply