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(Wallace Refiners) – Argonaut Gold (TSX: AR) reported Thursday that the previously announced definitive agreement to sell its Ana Paula project, located in Mexico, expired on March 31, 2021.
According to the company’s statement, the acquiring company did not fulfill its obligations in relation to financing and receipt of certain regulatory and other approvals.
The Ana Paula project is located in the State of Guerrero, Mexico, approximately 180 kilometres from Mexico City. Argonaut acquired the property in 2020 from Alio Gold, who acquired it in 2015. Ana Paula has 1,021 koz of gold at 2.36 g/t in reserves and 1,513 koz of gold in resources.
The company expects to publish an update pre-feasibility study for the Ana Paula project during the second quarter of 2021, which, according to Argonaut, will likely to demonstrate a relatively low capital cost, low operating cost, high-grade open pit project with future underground potential.
President and CEO Pete Dougherty commented, “We felt we had entered into a win-win agreement on the sale of Ana Paula whereby we could bring some value forward and also maintain upside to the project through an equity ownership and royalty. Unfortunately, the acquiring company was not able to fulfill its obligations and after extending the agreement once already, we feel we are better off pursuing other options for Ana Paula at this time.”
Argonaut Gold is a Canadian gold company engaged in exploration, mine development and production. Its primary assets are the El Castillo mine and San Agustin mine, which together form the El Castillo Complex in Durango, Mexico, the La Colorada mine in Sonora, Mexico and the Florida Canyon mine in Nevada, USA. The company also holds the construction stage Magino project, the advanced exploration stage Cerro del Gallo project and several other exploration stage projects, all of which are located in North America.
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