TSX-listed Argonaut Gold has executed a fixed bid engineering, procurement, construction and commissioning (EPCC) contract with Ausenco Engineering Canada for the Magino processing facility and other parts of the mining project, in Ontario.
Argonaut owns the El Castillo and San Agustin mines, which form the El Castillo Complex, in Mexico, as well as the La Colorada mine, in Mexico, and the Florida Canyon mine, in Nevada.
The Magino project is at an advanced exploration stage, while the company holds several other exploration stage projects in North America. Once developed, Magino will produce about 150 000 oz of gold during the first five years of production.
The EPCC contract with Ausenco accounts for 40% of Magino’s initial capital cost of between C$480-million and C$510-million.
Construction on the project can start as soon as the Magino project closure plan is filed with the Ontario province, which is expected before the end of January.
Meanwhile, Argonaut and AP Mining have amended their agreement for the sale of the Ana Paula project to AP Mining, to allow for more time to meet the regulatory and government approvals required for the closing.
AP Mining has agreed to pay an additional $1-million at 15 months from the closing date and to reimburse all of Argonaut’s costs incurred at the Ana Paula project incurred between January 1 this year and closing of the transaction.
Argonaut believes the transaction will close before the end of the first quarter.