Argonaut Gold’s sale of Ana Paula project fails
The two companies reached a definitive deal in September. Under the agreement, Argonaut would have sold all of the issued and outstanding shares of Aurea Mining Inc. and its wholly owned subsidiary Minera Aurea SA de CV, the developer of the project, to AP Mining.
Upon closing of the deal, Argonaut would have received C $ 30 million in cash, an additional C $ 10 million during construction and a 1% net smelter return (NSR) royalty for the project.
It would also have received 9.9% of the shares of the acquiring company, which was allegedly formed by a business combination between AP Mining and the private equity firm Pinehurst Capital II.
Dougherty noted that Ana Paula has “the ability to be a fundamental asset over time,” and said Argonaut expects to release an updated pre-feasibility study for the project in the second quarter of 2021, which “will demonstrate a relatively low investment cost, low operating high quality surface mine project with future underground potential.
The project contains 21 million measured and indicated tonnes grading 2.17 grams of gold per tonne for 1.5 million contained ounces. gold and inferred resources of 870,000 tonnes of 1.84 grams of gold for 51,000 oz. Golden.
Argonaut also announced that Lowe J. Billingsley will join the company as senior vice president of operations on April 12. Billingsley was previously a mine manager for the Stillwater East Mining complex in Sibanye-Stillwater (NYSE: SBGL) in Montana.
“Lowe is an accomplished international mining professional with a proven track record of vision, leadership, commitment, sound judgment and execution,” Dougherty said in the press release. “His wealth of experience will be a considerable asset for the company. “
Additionally, Argonaut reported a 43% year-over-year increase in mineral reserves and a 26% increase in measured and indicated resources. Company-wide, Argonaut has 323.4 million proven and probable tonnes grading 0.66 grams of gold per tonne for 6.9 million contained ounces. of gold and measured and indicated resources of 658.9 million tonnes grading 0.62 grams of gold for 13.1 million ounces. Golden.
The company’s main assets in Mexico include the El Castillo mine and the San Agustin mine, which form the El Castillo complex, the La Colorada mine and the Cerro del Gallo project. The company also owns the Florida Canyon mine in Nevada, the Magino project under construction in Ontario and several other projects in the exploration phase in North America.
(This article first appeared in The northern miner)