TORONTO, March 4, 2022 /CNW/ - Argonaut Gold Inc.
(TSX: AR) (the "Company", "Argonaut Gold" or "Argonaut") announces
that it has entered into monthly unsecured forward gold sales
contracts of 7,500 gold ounces between April
2022 and March 2023 at a price
of $1,916 per gold ounce. These
forward sales contracts total 90,000 ounces over the next 12 months
and provide certainty of cash flow during the final year of Magino
project construction. These contracts represent between 40 and 45%
of Argonaut's expected annual gold production, based on the
Company's most recent projections for production (see our press
release dated March 1, 2022). The
Company believes that these forward gold sales contracts will be
helpful for a potential future debt financing, which Argonaut is
working to finalize during the second quarter of 2022.
"We believe that the Magino project will be transformational to
the future of Argonaut. The objective of the forward gold
sales contracts is to take advantage of recent commodity price
increases and limit our exposure to risk associated with adverse
fluctuations over the next year. This will allow Argonaut to have
greater certainty in operating cash flows while we finalize the
construction of Magino", said David
Ponczoch, Argonaut's Chief Financial Officer.
Cautionary Note Regarding Forward-looking Statements
This press release contains certain "forward-looking statements"
and "forward-looking information" under applicable Canadian
securities laws concerning the business, operations and financial
performance and condition of Argonaut Gold Inc. ("Argonaut" or
"Argonaut Gold"). Forward-looking statements and forward-looking
information include, but are not limited to statements with respect
to: the Magino construction capital estimate; the ability to
finance additional construction costs on a timely basis on terms
acceptable to Argonaut; the realization of mineral reserve
estimates; the timing and amount of estimated future production;
the impact of inflation on costs of exploration, development and
production; estimated production and mine life of the various
mineral projects of Argonaut; timing of approval for modifications
to existing permits; permitting and legal processes in relation to
mining permitting and approval; the benefits of the development
potential of the properties of Argonaut; the future price of gold,
copper, and silver; the estimation of mineral reserves and
resources; success of exploration activities; the impact of
COVID-19, the response of governments to COVID-19 and the
effectiveness of such responses; and currency exchange rate
fluctuations. Except for statements of historical fact relating to
Argonaut, certain information contained herein constitutes
forward-looking statements. Forward-looking statements are
frequently characterized by words such as "plan," "expect,"
"project," "intend," "believe," "anticipate", "estimate" and other
similar words, or statements that certain events or conditions
"may", "should" or "will" occur. Forward-looking statements are
based on the opinions and estimates of management at the date the
statements are made and are based on a number of assumptions and
subject to a variety of risks and uncertainties and other factors
that could cause actual events or results to differ materially from
those projected in the forward-looking statements. Many of these
assumptions are based on factors and events that are not within the
control of Argonaut and there is no assurance they will prove to be
correct.
Factors that could cause actual results to vary materially from
results anticipated by such forward-looking statements include: the
availability and changing terms of financing; the possibility of
project cost overruns or unanticipated costs and expenses;
variations in ore grade or recovery rates; changes in market
conditions, including, but not limited to, supply chain issues and
inflation; the availability and timeliness of permitting and
governmental approvals; risks relating to international operations;
fluctuating metal prices and currency exchange rates; changes in
project parameters; the impact of COVID-19 and the impact and
effectiveness of governmental responses to COVID-19; labour
disputes; and other risks of the mining industry, including, but
not limited to, the failure of plant, equipment or processes to
operate as anticipated. These factors are discussed in greater
detail in Argonaut's most recent Annual Information Form and in the
most recent Management's Discussion and Analysis filed on SEDAR,
which also provide additional general assumptions in connection
with these statements. Argonaut cautions that the foregoing list of
important factors is not exhaustive. Investors and others who base
themselves on forward-looking statements should carefully consider
the above factors as well as the uncertainties they represent and
the risk they entail. Argonaut believes that the expectations
reflected in those forward-looking statements are reasonable, but
no assurance can be given that these expectations will prove to be
correct and such forward-looking statements included in this press
release should not be unduly relied upon. These statements speak
only as of the date of this press release.
Although Argonaut has attempted to identify important factors
that could cause actual actions, events, or results to differ
materially from those described in forward-looking statements,
there may be other factors that cause actions, events or results
not to be anticipated, estimated or intended. There can be no
assurance that forward-looking statements will prove to be
accurate, as actual results and future events could differ
materially from those anticipated in such statements. Argonaut
undertakes no obligation to update forward-looking statements if
circumstances or management's estimates or opinions should change
except as required by applicable securities laws. The reader is
cautioned not to place undue reliance on forward-looking
statements. Statements concerning mineral reserve and resource
estimates may also be deemed to constitute forward-looking
statements to the extent they involve estimates of the
mineralization that will be encountered if the property is
developed. Comparative market information is as of a date prior to
the date of this document.
About Argonaut Gold
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 Ana Paula project, and several other exploration
stage projects, all of which are located in North
America.
For more information, contact:
Argonaut Gold Inc.
Dan Symons
Vice President
Corporate Development & Investor Relations
Phone: 416-915-3107
Email: dan.symons@argonautgold.com
SOURCE Argonaut Gold Inc.