TORONTO, March 28,
2023 /CNW/ - Argonaut Gold Inc. (TSX: AR) (the
"Company", "Argonaut Gold" or "Argonaut") is pleased to announce
that it has completed the sale of the Ana Paula Project ("Ana
Paula") to Heliostar Metals Limited. As per the purchase
agreement announced on December 5,
2022, Argonaut has sold 100% of Ana Paula for US$10
million payable in cash upon closing, plus an
additional US$20 million in deferred
cash and share consideration, contingent on meeting certain
milestones. Ana Paula is a non-core
asset located in Guerrero,
Mexico.
"As we refocus our portfolio, the sale of this non-core
property is consistent with our capital allocation strategy of
investing in our assets that have the potential to generate
the highest returns and drive free cash flow growth," stated
Richard Young, President and CEO of
Argonaut Gold.
The sale of Ana Paula was
accomplished through the sale of all issued and outstanding shares
of Aurea Mining Inc. ("Aurea Mining"), a wholly-owned subsidiary of
Argonaut, which through Aurea Mining's wholly-owned subsidiary
Minera Aurea S.A. de C.V., holds a 100% indirect interest in and to
Ana Paula.
About Argonaut Gold
Argonaut Gold is a Canadian gold company with a portfolio of
operations and multi-stage assets in North America. Focused on becoming a low-cost
mid-tier gold producer in North
America, the Company is in the final stage of construction
at its Magino project, located in Ontario, Canada. Magino is expected to achieve
commercial production in the third quarter of 2023 and become
Argonaut's largest and lowest cost mine. The commissioning of
Magino will be the first step in transforming the Company as it
enters a pivotal growth stage.
The Company also has three operating mines including the Florida
Canyon mine in Nevada, USA, where
it is pursuing additional growth, the La
Colorada mine in Sonora,
Mexico, and the San Agustin
mine in Durango, Mexico. Argonaut
Gold trades on the Toronto Stock Exchange (TSX) under the ticker
symbol "AR".
For more information,
contact:
|
Joanna Longo
|
Argonaut Gold
Inc.
|
|
Investor
Relations
|
3400 One First Canada
Place
|
|
Phone: (416)
575-6965
|
Toronto, ON M5X
1A4
|
|
Email:
investor.relations@argonautgold.com
|
www.argonautgold.com
|
SOURCE Argonaut Gold Inc.