TSX-listed Argonaut Gold has acquired key mineral concessions near its San Agustin mine, in Mexico, from a subsidiary of London-listed Fresnillo for $5.75-million in cash.
The mineral concessions consist of a very large concession of 4 791 ha surrounding all Argonaut's existing concessions in the district, as well as four key concessions totalling 27 ha immediately surrounding the San Agustin pit.
"The acquisition of these strategic mineral concessions wrap up the San Agustin district for Argonaut, more than quadrupling our mineral tenure to 5 884 ha and vastly increasing our exploration potential,” said president and CEO Pete Dougherty.
The acquisition of the four mineral concessions immediately adjacent to the San Agustin pit will allow Argonaut to expand the pit, increase mineral reserves and extend mine life.
The very large concession surrounding all Argonaut's existing mineral concessions in the San Agustin district increases Argonaut's area of potential exploration by more than 400%.
San Agustin forms part of the El Castillo Complex.