Argonaut Gold Announces the Closing of its Acquisition of the Cerro del Gallo Project in Guanajuato, Mexico
All dollar amounts are expressed in US dollars, unless otherwise specified
TORONTO, Nov. 27, 2017 /CNW/ - Argonaut Gold Inc. (TSX: AR) (the "Company", "Argonaut Gold" or "Argonaut") is pleased to announce it has closed the previously announced acquisition of the Cerro del Gallo ("CDG" or the "Project") through the purchase of all of the issued and outstanding shares of San Anton Resource Corporation, a subsidiary of Primero Mining Corp. (see press release dated November 14, 2017) for $15 million. Argonaut expects to be able to recover approximately $1.7 million of value added tax, which reduces the total purchase price to $13.3 million. The companies acquired as part of this transaction include approximately $22 million in tax losses.
The CDG deposit sits within the San Antón property, which covers an area of 25,269 hectares and consists of 12 granted, contiguous mining concessions all now owned by Argonaut through its subsidiary. The concessions include areas of historical mines formerly worked for high grade vein-hosted gold and silver.
The CDG deposit is located in the state of Guanajuato in central Mexico, approximately 30 kilometres west of the Guanajuato International Airport, 55 kilometres west of the city of Leon and major facilities and in an active mining district. The property is accessible by road, rail and air services. Additionally, there is availability of a skilled local workforce, grid power, water, sealed roads, equipment suppliers and established transport routes.
About Argonaut Gold
Argonaut Gold is a Canadian gold company engaged in exploration, mine development and production activities. Its primary assets are the production stage El Castillo mine and San Agustin mine, which together form the El Castillo Complex in Durango, Mexico and the production stage La Colorada mine in Sonora, Mexico. Advanced exploration stage projects include the San Antonio project in Baja California Sur, Mexico, and the Magino project in Ontario, Canada. The Company also has several exploration stage projects, all of which are located in North America.
Cautionary Note Regarding Forward-looking Statements
This press release contains certain "forward-looking statements" and "forward-looking information" under applicable Canadian securities laws concerning the business, operations and financial performance and condition of Argonaut Gold Inc. ("Argonaut" or "Argonaut Gold"). Forward-looking statements and forward-looking information include, but are not limited to, statements with respect to financial impact of proposed acquisitions; the benefits of the development potential of the properties of Argonaut; synergies; the ability to obtain permits for operations; the ability to obtain tax refunds; the realization of mineral reserve estimates; the timing and amount of estimated future production; and success of exploration activities. Except for statements of historical fact relating to Argonaut, certain information contained herein constitutes forward-looking statements. Forward-looking statements are frequently characterized by words such as "plan," "expect," "project," "intend," "believe," "anticipate", "estimate" and other similar words, or statements that certain events or conditions "may", "should" or "will" occur. Forward-looking statements are based on the opinions and estimates of management at the date the statements are made, and are based on a number of assumptions and subject to a variety of risks and uncertainties and other factors that could cause actual events or results to differ materially from those projected in the forward-looking statements. Many of these assumptions are based on factors and events that are not within the control of Argonaut and there is no assurance they will prove to be correct.
Factors that could cause actual results to vary materially from results anticipated by such forward-looking statements include risks relating to the availability and timeliness of permitting and governmental approvals and processes; variations in ore grade or recovery rates; risks relating to international operations; fluctuating metal prices and currency exchange rates; and other risks of the mining industry, failure of plant, equipment or processes to operate as anticipated.
These factors are discussed in greater detail in Argonaut's most recent Annual Information Form and in the most recent MD&A filed on SEDAR, which also provide additional general assumptions in connection with these statements. Argonaut cautions that the foregoing list of important factors is not exhaustive. Investors and others who base themselves on forward-looking statements should carefully consider the above factors as well as the uncertainties they represent and the risk they entail. Argonaut believes that the expectations reflected in those forward-looking statements are reasonable, but no assurance can be given that these expectations will prove to be correct and such forward-looking statements included in this press release should not be unduly relied upon. These statements speak only as of the date of this press release. Argonaut undertakes no obligation to update forward-looking statements if circumstances or management's estimates or opinions should change except as required by applicable securities laws. The reader is cautioned not to place undue reliance on forward-looking statements.
SOURCE Argonaut Gold Ltd.
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