Argonaut Gold Inc. has approved the construction of the company’s 100% owned Magino gold project in Ontario, Canada. Argonaut also received a fixed bid pricing proposal for a significant portion of the initial capital requirement for the project and has secured debt financing of up to $175 million by way of a $500 million boughtdeal offering of senior unsecured convertible debentures and the extension and expansion of its existing revolving credit facility (RCF) for up to $125 million.
Argonaut said it anticipates a two-year construction period beginning in January 2021 following the closure plan filing and posting of a financial assurance bond with the province of Ontario. The first gold pour is anticipated during the first half of 2023.
In the Magino Feasibility Study Technical Report filed December 2017, initial capital was estimated at $321 million and has recently been estimated at between $360 million and $360 million, including contingency and inflation.
The company has recently received a fixed bid pricing proposal that covers approximately 50% of the recent initial capital estimate of between $360 million and $380 million.
The Magino FS demonstrated that the Magino project is a strategic, scalable, long-life asset in the attractive mining jurisdiction of Ontario, Canada. It will be a 10,000-metric-ton-per-day processing facility and average annual gold production of 150,000 ounces over the first five years with a mine life of 17 years.