TORONTO, Nov. 27, 2017 /CNW/ - Argonaut Gold Inc. (TSX: AR) (the "Company", "Argonaut Gold" or "Argonaut") is pleased to announce it has closed the previously announced acquisition of the Cerro del Gallo ("CDG" or the "Project") through the purchase of all of the issued and outstanding shares of San Anton Resource Corporation, a subsidiary of Primero Mining Corp. (see press release dated November 14, 2017) for $15 million. Argonaut expects to be able to recover approximately $1.7 million of value added tax, which reduces the total purchase price to $13.3 million. The companies acquired as part of this transaction include approximately $22 million in tax losses.
The CDG deposit sits within the San Antón property, which covers an area of 25,269 hectares and consists of 12 granted, contiguous mining concessions all now owned by Argonaut through its subsidiary. The concessions include areas of historical mines formerly worked for high grade vein-hosted gold and silver.
The CDG deposit is located in the state of Guanajuato in central Mexico, approximately 30 kilometres west of the Guanajuato International Airport, 55 kilometres west of the city of Leon and major facilities and in an active mining district. The property is accessible by road, rail and air services. Additionally, there is availability of a skilled local workforce, grid power, water, sealed roads, equipment suppliers and established transport routes.
About Argonaut Gold
Argonaut Gold is a Canadian gold company engaged in exploration, mine development and production activities. Its primary assets are the production stage El Castillo mine and San Agustin mine, which together form the El Castillo Complex in Durango, Mexico and the production stage La Colorada mine in Sonora, Mexico. Advanced exploration stage projects include the San Antonio project in Baja California Sur, Mexico, and the Magino project in Ontario, Canada. The Company also has several exploration stage projects, all of which are located in North America.