Argonaut Gold reaffirms Magino's estimated cost to completion, announces $250 million funding package
(Kitco News) - Argonaut Gold (TSX: AR) today announced a reaffirmation of the estimated cost to completion of its 100% owned Magino project and a funding package which is expected to fully finance construction of the project.
The company said it has recently completed a detailed review of the estimated cost to completion ("EAC") of its Magino project and, consistent with its press release dated May 11, 2022, now estimates the EAC at approximately C$920 million, a C$120 million increase from the December 14, 2021 EAC of C$800 million.
According to a press-release, as at May 31, 2022, the company had committed approximately C$659 million, had incurred approximately C$473 million, estimates the project is approximately 50% complete and that the project remains on schedule for first gold pour by the end of March 2023.
Importantly, Argonaut noted that the Magino project management team has been augmented to improve project controls.
In addition, the company announced it has received a binding commitment letter from a syndicate of lenders for the financing of a six year, US$200 million term loan credit facility and a three year revolving credit facility of US$50 million, for a total debt facilities limit of US$250 million.
Argonaut added that the proceeds of the facilities are to be used to refinance the company's existing debt and for general corporate purposes, including ongoing development and expansion capital of the Magino project in Ontario, Canada and other producing assets.
|Sibanye-backed lithium developer Keliber reports maiden mineral resources at its Tuoreetsaaret deposit in Finland|
The company also announced that it is commencing a marketed offering of common shares of the company, the proceeds of which will be used for the development of the Magino project and for general corporate purposes.
Argonaut Gold is a Canadian gold company engaged in exploration, mine development and production. Its primary assets are the El Castillo mine and San Agustin mine, which together form the El Castillo Complex in Durango, Mexico, the La Colorada mine in Sonora, Mexico and the Florida Canyon mine in Nevada, USA.
The company also holds the construction stage Magino project, the advanced exploration stage Cerro del Gallo project and several other exploration stage projects, all of which are located in North America.