Toronto, October 27, 2022 /CNW/- Argonaut Gold Co., Ltd. (TSX: AR) (“Company”, “Argonaut Gold” or “Argonaut”) today announces that the company has exited its previously announced business. $250 million Withdrawal of loan facility and first tranche $80 million A loan facility used to repay the outstanding balance of a previous revolving credit facility.

Argonaut Gold Inc. logo (CNW Group/Argonaut Gold Inc.)

Argonaut Gold Inc. logo (CNW Group/Argonaut Gold Inc.)

The Loan Facility consists of a term loan of $200 million and revolving lines of credit $50 million For the ongoing development and construction of the Magino Project. Pursuant to the loan facility, Argonaut has hedged 25,000 gold ounces against the gold price each quarter for his six quarters beginning in the third quarter of 2023. $1,860At 15,000 gold ounces per quarter for 10 quarters starting in Q1 2025, the price of gold is $1,860/ Oz. Additionally, we are hedging 10,000 ounces of gold per quarter from Q1 2025 over his 10 quarters to the gold price. $1,763/ Oz. Argonaut hedges its Canadian dollar exposure at average rates through forward contracts. 1.334 Canadian Dollar Around $1 USD for the next 24 months. All conditions prior to loan facility drawdown have been met.

In addition, Argonaut completed the sale of a 2% net smelter royalty on the Magino Project and its surrounding land package to Franco Nevada Corporation (“Franco Nevada”). $52.5 million and $10 million A private placement of shares by issuing 34,693,462 shares of common stock of the Company in the State of Franco Nevada at a price of CAD $0.3931 per common share.

“In closing this financing, Argonaut expects to meet all future financial obligations related to Magino’s construction and banking agreements while maintaining a high level of financial flexibility. .” Larry Radford, President and CEO of Argonaut Gold. “Financial completion is a testament to Magino’s strong project base, supported by our gold-focused royalty partner Franco Nevada and our lender syndicate. We are confident that we have the financial resources to complete the Magino Project’s first gold and milestones beyond.”

Maginot Project Update

Argonaut continues construction and begins operational readiness activities at Project Magino. Specific deliverable statuses are:

  • Chuck Hennessy He joined Argonaut as Vice President of Canadian Operations, leading Magino from project to operations.

  • Tailings Management Facility Stage 1A Progress and Stage Commencement 1B;

  • Review of proposed pit optimization and mining sequences.

  • Received the factory’s main process equipment. A mill and a tank are installed.

  • An important leadership position was filled.

  • Formal operational readiness initiatives are on track as is the commissioning plan – +72% action items completed.

  • Pumps, plumbing, and electrical systems have been installed, many of which are in closed factory buildings, ready for winter conditions.

  • All four permanent generators have been received and installed.

About Argonaute Gold

Argonaut Gold is a Canadian gold company engaged in exploration, mine development and production. Its main assets are El Castillo Me and San Agustin Together they form the El Castillo complex. Durango, Mexico, La Colorada mining Sonora, Mexico and Florida Canyon Mine Nevada,usa. The company also has his Magino project in construction, the advanced exploration stage. Cerro del Gallo project and some other exploration-stage projects. These are all North America.

About Franco Nevada Corporation

Franco-Nevada is a leading gold-focused loyalty and streaming company with the largest and most diversified portfolio of cash flow generating assets. Its business model provides investors with gold prices and exploration options, while limiting its exposure to cost inflation. Franco-Nevada Debt-free, use free cash flow to grow your portfolio and pay dividends. It is traded under the FNV symbol on both exchanges. Toronto When New York stock exchange.

Cautionary Note Regarding Forward-Looking Statements

This press release contains certain “forward-looking statements” and statements under applicable Canadian securities laws regarding the business, operations, financial performance and condition of Argonaut Gold Inc. (“Argonaut” or “Argonaut Gold”). It contains “forward-looking information”. Forward-looking statements and forward-looking information include, but are not limited to: A statement on the cost and timing of construction. Permits and legal procedures related to mining permits and approvals. Estimated production and mine life for various Argonaut mineral projects. the ability to obtain operating permits; synergies; the realization of mineral reserve estimates; and the timing and amount of projected future production. production costs; the advantages of possible development of Argonaut properties; Future prices of gold, copper and silver. mineral reserves and resource estimates; successful exploration activities; and exchange rate fluctuations. Except for statements of historical fact regarding Argonaut, certain information contained herein constitutes forward-looking statements. Forward-looking statements often use words such as “plans,” “expects,” “anticipates,” “intends,” “believes,” “forecasts,” “estimates,” Characterized by a description of an event or situation. “may”, “should”, “would”. Forward-looking statements are based on management’s opinions and estimates at the time the statements were made, are based on many assumptions, are subject to various risks and uncertainties and are subject to actual events or outcomes. subject to other factors that may have different causes. from those projected in forward-looking statements; Many of these assumptions are based on factors and events beyond Argonaut’s control, and there is no guarantee that they will prove correct.

Factors that could cause actual results to differ materially from those anticipated by such forward-looking statements include supply chain resilience, inflation and other impacts on construction, ore grade or recovery. including risks related to rate fluctuations, changes in market conditions, availability and timeliness. Permits and Government Approvals. risks associated with international operations; fluctuating metal prices and currency exchange rates; changes in project parameters; potential for project cost overruns or unanticipated costs and expenses; Operation failure As expected.

These factors are detailed in Argonaut’s most recent annual information form and the most recent management discussion and analysis filed with SEDAR, and additional general assumptions related to these statements are also provided. I’m here. Argonaut warns that the aforementioned list of key factors is not exhaustive. Investors and others relying on forward-looking statements should carefully consider the factors described above and the uncertainties they represent and the risks associated with them. While Argonaut believes that the expectations reflected in these forward-looking statements are reasonable, there is no assurance that these expectations will prove correct and no forward-looking statements contained in this press release are given. Undue reliance should not be placed on statements regarding These statements are made only as of the date of this press release.

Argonaut has attempted to identify important factors that could cause its actual actions, events or results to differ materially from those set forth in the forward-looking statements, but Argonaut , presumed or unintended causative factors may exist. 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 any forward-looking statements if circumstances or management’s estimates or opinions change, except as required by applicable securities laws. Readers are cautioned not to place undue reliance on forward-looking statements. Statements regarding estimates of mineral reserves and resources may also be considered forward-looking statements to the extent that they include estimates of mineralization that will be encountered if the property is developed. Comparative market information is dated prior to the date of this document.

For more information, please contact:

Argonaut Gold Co., Ltd.
Joanna Longo
PR for investors
Phone: 416 575 6965
Email: [email protected]

Source Argonaut Gold Inc.



View original content and download multimedia:

Source link

By admin

Leave a Reply

Your email address will not be published. Required fields are marked *