Toronto gold company raises $85 million in share raise to fund future expansion
Toronto’s Argonaut Gold has raised $85 million to fund future expansion at its Magino Mine, outside Dubreuilville, and another mine in Nevada. The financing was done through a public offering of more than 223,000 common shares that closed on Dec. 12.
In a news release, the company said the proceeds are earmarked to “fund development and optimization” at Magino and its Florida Canyon Mine in Nevada. The company didn’t specify how much will be individually allocated between Magino and Florida Canyon.
Magino is fully funded as an operating open-pit mine but Argonaut ran up its bills due to a raft of startup issues in late summer and the fall that created a $179-million debt.
During the run-up to commercial production in November, there were delays in commissioning the mill, the company didn’t mine as much gold as planned, gold grades and in haulage rates to the mill.Fixing the balance sheet is a focus of Argonaut’s front office.