Toronto-listed mining companies Ascot Resources and Argonaut Gold on Monday announced bought-deal financing agreements to fund their respective projects, both of which are past-producing gold mines in Canada that recently reported capital cost increases.

Ascot announced an agreement with a syndicate of underwriters co-led by Desjardins Capital Markets and BMO Capital Markets, under which the underwriters have agreed to buy on a bought deal basis C$56-million of common shares and units of the company.

The net proceeds would be used for capital costs at the Premier gold project, in British Columbia, and for general corporate purposes.

Ascot last month reported a new capital expenditure (capex) estimate of C$224-million for Premier, which is a 27% increase on the previous estimate. The increase was driven by indirect costs caused by schedule delays, weather impacts and supply chain pressures.

The first gold pour for Premier is slated for early next year.

Argonaut, for its part, entered into an agreement with a syndicate of underwriters led by BMO Capital Markets, under which the underwriters have agreed to buy on a bought deal basis by way of private placement flow-through common shares for gross proceeds of C$45-million.

The company would use the net proceeds of the offering for continued exploration and development activities at the Magino project, in Ontario, and for general corporate purposes.

Argonaut  in December announced a new capital cost estimate of C$800-million for Magino – C$290-million more than the previous estimate.

Changes in scope accounted for about 28% of the capex increase and primarily relate to site development, the tailings management facility and permanent power. About 20% of the capex increase related to increases in quantities.

There was also a cost involved for compressing the schedule, after work on the processing facility fell behind owing to civil works challenges. Compressing the schedule to meet the initial target of first gold pour by March 2023 was deemed to be more economic than delaying the overall project.

Argonaut reports in its February newsletter that the project continues to advance on schedule for first gold pour next year.