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Argonaut Gold to build Magino Mine in Ontario

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(Kitco News) - Argonaut Gold announced Thursday that is it moving forward with the development of its Magino project in northern Ontario, Canada.

The company said that it expects to start its two-year construction operation in January 2021.

“The first gold pour is anticipated during the first half of 2023,” the company said in its press release.

The company is budgeting $400 million for the construction. To help cover the capital costs, the company has said that it secured debt financing of up to $175 million by way of a US$50 million bought deal offering of senior unsecured convertible debentures and the extension and expansion of its existing revolving credit facility for up to $125 million.

“The Magino project is a strategic, scalable, long-life asset in the attractive mining jurisdiction,” the company said.

According to the projects feasibility study the mine is expected to process up to 10,000 tonnes of ore per day and should see average annual gold production of 150,000 ounces over the first five years.

The company said that it projects all-in sustaining cost of US$711 per gold ounce sold.

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