Silver Standard Resources Inc. has announced an agreement with Argonaut Gold Inc. to sell 100% of its San Agustin project in Mexico for an aggregate consideration of $75 million; Argonaut is a U.S.-based company listed on the Toronto Stock Exchange.
“This transaction demonstrates the value within our portfolio beyond our mine and development projects,” said Silver Standard CEO John Smith. Selling the Durango mine “adds to our balance sheet for funding future growth,” he added.
Under the deal, Silver Standard will sell its San Agustin interest for aggregate consideration of $15 million cash, payable at closing. This will further include $30 million in Argonaut shares, $10 million in cash payable after six months and $20 million cash 18 months following the definitive agreement. Silver Standard will also enjoy a 2% NSR royalty on San Agustin-produced sulphide ore; company officials expect the transaction to close by Q1 2014.