Argonaut Gold ahead of schedule in clearing room for open-pit operation
The builders of an open-pit gold camp, outside Dubreuilville, have taken an ownership stake in the project.
Argonaut Gold has raised $10 million through a private placement share offering with its contractor, Ausenco Engineering Canada.
This arrangement was first contemplated last January when Ausenco came aboard through a fix-bid engineering, procurement, construction and commission contract to to build the on-site processing plant at Magino.
As the holder of 4,255,319 common shares, Ausenco becomes an 8.3 per cent owner in the project. Argonaut said those proceeds are earmarked for mine construction work and general corporate purposes.
The mine life at Magino is projected for 17 years, with calculated production of 2.2 million ounces in that span. But the company is continuing exploration in and around the proposed pit, and that’s led to the discovery of high-grade gold at depth which could lead to an underground mine and greater longevity for the operation.