The board of directors of Argonaut Gold has approved construction of the company’s wholly owned Magino gold project in Ontario, 40 km northeast of Wawa. As the producer looks to grow its operating asset base, Argonaut has also announced debt financing for the project. This includes debt financing of up to $175 million, with a $50 million bought deal offering of senior unsecured convertible debentures and the extension and expansion of its existing $75 million credit facility, to $125 million.

With a two-year construction period anticipated for Magino starting in January 2021, Argonaut expects a first gold pour from this operation in the first half of 2023. Before the mine build can begin, the company needs to first file a closure plan and post an assurance bond with the province.