Ana Paula contains an estimated 20.9 Mt of measured and indicated resources at 2.17 g/t for 1.46 million contained gold ounces
Argonaut will also retain a 1% net smelter return royalty on the project and hold a 9.9% stake in the acquiring company, which will be formed by a business combination between AP Mining — a private company registered in British Columbia — and capital pool company Pinehurst Capital II.
Proceeds of this transaction will be used to support the development of Argonaut’s Magino gold project in Ontario, the company said.
The Ana Paula property, comprising a 56,000-hectare land package within the Sierra Madre mountain range, was acquired by Argonaut through its merger with Alio Gold earlier this year.
The project contains an estimated 20.9 Mt of measured and indicated resources at 2.17 g/t for 1.46 million contained gold ounces.
Shares of Argonaut Gold rose 1.4% by 2 p.m. EDT Friday, capping the Nevada-based miner at a market value of C$806 million.
