A local mining project is moving forward.
After several years in development, Argonaut Gold says its board of directors has approved construction of its Magino Gold project near Dubreuilville, expecting a two-year construction period starting in January, following the closure plan filing and posting of a financial assurance bond with the province - the first gold pour is expected during the first half of 2023.
Argonaut's feasibility study outlines a 10,000 tonne a day processing facility with average annual gold production of 150,000 ounces over the first five years, and an expected seventeen-year mine life.
Initial capital recently was estimated between $360 and $380-million US, though the project's backed by a fixed bid pricing proposal for a significant portion of that initial capital requirement, along 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.