The construction of the 123 000 oz/y Magino openpit gold mine, near Wawa, Ontario, has been approved, Toronto-listed Argonaut Gold announced on Wednesday.
A two-year construction period will get under way in January 2021, with first gold expected in early 2023.
The 2017 feasibility study project estimated the capital expenditure (capex) requirement for Magino at $321-million, but this was recently updated to between $360-million and $380-million.
Argonaut announced that it had received a fixed-bid pricing proposal for a significant portion of the initial capex for the Magino project with secured debt financing of up to $175-million by way of a $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.
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