TORONTO, Jan. 4, 2021 /CNW/ - Argonaut Gold Inc.
(TSX: AR) (the "Company", "Argonaut Gold" or "Argonaut") is pleased
to announce that it has executed a fixed bid engineering,
procurement, construction and commissioning contract (the "EPC
contract") with Ausenco Engineering Canada Inc. ("Ausenco"), a
leading engineering and construction management company, for the
construction of the Magino processing facility and other parts of
the Magino construction project. The EPC contract totals
approximately 40% of Magino's initial capital estimate of between
C$480 million and C$510 million (approximately US$360 million and US$380
million at a 0.75 Canadian
dollar to US dollar exchange ratio, which was the
approximate ratio when the construction decision was made October
2020).
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Pete Dougherty, President and CEO
stated: "We are very pleased to partner with Ausenco on the Magino
project construction. Ausenco is an industry leader in the
field of building high-quality processing facilities in the mining
industry and recently did an excellent job with the Moose River
project in Nova Scotia,
Canada. We are excited for Magino to be one of the first
projects entering construction in the current gold price
environment, as we feel first mover advantage is critical when
securing a construction team of the highest quality and with a
superior track record."
The Magino project has received tremendous stakeholder support
locally, provincially and federally, as well as strong shareholder
support to see the project move forward. Argonaut recently
posted the first phase of financial assurance with the province of
Ontario and expects the Magino
project Closure Plan will be filed by the province of Ontario in January
2021, which will allow for construction to commence.
Ana Paula Sale Agreement
Argonaut and AP Mining have amended the agreement for the
previously announced sale of the Ana Paula project to AP Mining
(see press release dated September 11,
2020) to allow more time to meet the regulatory and
government approvals required for closing. In connection with
the amendment, AP Mining has agreed to pay an additional
US$1.0 million at 15 months from the
closing date and to reimburse all of Argonaut's costs incurred
associated with the Ana Paula project incurred between January 1, 2021 and the closing of the
transaction. Closing continues to be subject to financing and
receipt of all necessary approvals, which is expected in the first
quarter of 2021.
Cautionary Note Regarding Forward-looking Statements
This press release contains certain "forward-looking statements"
and "forward-looking information" under applicable Canadian
securities laws concerning the business, operations and financial
performance and condition of Argonaut Gold Inc. ("Argonaut" or
"Argonaut Gold"). Forward-looking statements and forward-looking
information include, but are not limited to statements with respect
to the proposed sale of the Ana Paula project; permitting and legal
processes in relation to mining permitting and
approvals; estimated production and mine life of the various
mineral projects of Argonaut; the ability to obtain permits for
operations; synergies; the realization of mineral reserve
estimates; the timing and amount of estimated future production;
costs of production; and financial impact of completed
acquisitions; the benefits of the development potential of the
properties of Argonaut; the future price of gold, copper, and
silver; the estimation of mineral reserves and resources; success
of exploration activities; and currency exchange rate fluctuations.
Except for statements of historical fact relating to Argonaut,
certain information contained herein constitutes forward-looking
statements. Forward-looking statements are frequently characterized
by words such as "plan," "expect," "project," "intend," "believe,"
"anticipate", "estimate" and other similar words, or statements
that certain events or conditions "may", "should" or "will" occur.
Forward-looking statements are based on the opinions and estimates
of management at the date the statements are made, and are based on
a number of assumptions and subject to a variety of risks and
uncertainties and other factors that could cause actual events or
results to differ materially from those projected in the
forward-looking statements. Many of these assumptions are based on
factors and events that are not within the control of Argonaut and
there is no assurance they will prove to be correct.
Factors that could cause actual results to vary materially from
results anticipated by such forward-looking statements include
variations in ore grade or recovery rates, changes in market
conditions, risks relating to the availability and timeliness of
permitting and governmental approvals; risks relating to
international operations, fluctuating metal prices and currency
exchange rates, changes in project parameters, the possibility of
project cost overruns or unanticipated costs and expenses, labour
disputes and other risks of the mining industry, failure of plant,
equipment or processes to operate as anticipated.
These factors are discussed in greater detail in Argonaut's most
recent Annual Information Form and in the most recent Management's
Discussion and Analysis filed on SEDAR, which also provide
additional general assumptions in connection with these statements.
Argonaut cautions that the foregoing list of important factors is
not exhaustive. Investors and others who base themselves on
forward-looking statements should carefully consider the above
factors as well as the uncertainties they represent and the risk
they entail. Argonaut believes that the expectations reflected in
those forward-looking statements are reasonable, but no assurance
can be given that these expectations will prove to be correct and
such forward-looking statements included in this press release
should not be unduly relied upon. These statements speak only as of
the date of this press release.
Although Argonaut has attempted to identify important factors
that could cause actual actions, events or results to differ
materially from those described in forward-looking statements,
there may be other factors that cause actions, events or results
not to be anticipated, estimated or intended. There can be no
assurance that forward-looking statements will prove to be
accurate, as actual results and future events could differ
materially from those anticipated in such statements. Argonaut
undertakes no obligation to update forward-looking statements if
circumstances or management's estimates or opinions should change
except as required by applicable securities laws. The reader is
cautioned not to place undue reliance on forward-looking
statements. Statements concerning mineral reserve and resource
estimates may also be deemed to constitute forward-looking
statements to the extent they involve estimates of the
mineralization that will be encountered if the property is
developed. Comparative market information is as of a date prior to
the date of this document.
For further information on the Magino project, please see the
report as listed below on the Company's website or on
www.sedar.com:
Magino Gold
Project
|
Feasibility Study
Technical Report on the Magino Project, Ontario, Canada dated
December 21, 2017 (effective date November 8, 2017)
|
About Argonaut Gold
Argonaut Gold is a Canadian gold company engaged in exploration,
mine development and production. Its primary assets are the
El Castillo mine and San Agustin mine, which together form the El
Castillo Complex in Durango,
Mexico, the La Colorada
mine in Sonora, Mexico and the
Florida Canyon mine in Nevada,
USA. Advanced exploration projects include the Magino project
in Ontario, Canada and the Cerro
del Gallo project in Guanajuato,
Mexico. The Company continues to hold several other
exploration stage projects, all of which are located in
North America.
For more information,
contact:
Argonaut Gold Inc.
Dan
Symons
Vice President, Corporate Development & Investor Relations
Phone: 416-915-3107
Email: dan.symons@argonautgold.com
Source: Argonaut Gold Inc.
SOURCE Argonaut Gold Inc.