Argonaut completes financing for Magino construction
Canadian miner Argonaut Gold on Thursday announced that it had completed the financing for its over-budget Magino gold project, having closed the previously announced $250-million loan facilities.
The company also drew down the first $80-million tranche of the loan to repay the balance outstanding on the former revolving credit facility.
In addition, Argonaut has closed the sale of a 2% net smelter return royalty on the Magino project and surrounding land package to Franco-Nevada for $52.5-million and a $10-million equity private placement by way of issuance of 34 693 462 common shares to Franco-Nevada at a price of C$0.3931 a common share.
"In completing this financing, Argonaut expects to meet all future financial obligations related to Magino construction and banking covenants while also maintaining a high level of financial flexibility," said Argonaut president and CEO Larry Radford.
“We are confident we have the financial resources to complete the construction of the Magino project and achieve the milestone of first gold and beyond.”
Argonaut recently appointed Chuck Hennessey as VP for its Canadian operations to take Magino from project level, into production.
In June 2022, Argonaut announced that the project costs had risen by another $120-million from the December 2021 estimate of C$800-million.
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