TORONTO, March 4, 2022 /CNW/ – Argonaut gold inc (TSX: AR) (the “Company”, “Argonaut Gold” or “Argonaut”) announces that it has entered into monthly unsecured gold futures sales contracts for 7,500 gold ounces 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 cash flow security over the final year of construction of the Magino Project. These contracts represent between 40% and 45% of Argonaut’s expected annual gold production based on the Company’s most recent production forecasts (see our press release dated March 1, 2022). The Company believes these forward gold sale agreements will assist in potential future debt financing that Argonaut is working towards closing in Q2 2022.
“We believe that the Magino project will change the future of Argonaut. The objective of gold futures contracts is to take advantage of recent increases in commodity prices and limit our exposure to adverse volatility over the next year. This will be to give Argonaut greater certainty in terms of operating cash flows as we complete construction of Magino,” he said David PonczochChief Financial Officer of Argonaut.
Cautionary Note Regarding Forward-Looking Statements
This press release contains certain “forward-looking statements” and “forward-looking information” under applicable Canadian securities laws regarding 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 relating to: Magino’s home equity estimate; the ability to fund additional construction costs in a timely manner on terms acceptable to Argonaut; the completion of mineral reserve estimates; the timing and amount of estimated future production; the impact of inflation on exploration, development and production costs; estimated production and mine life of Argonaut’s various mineral projects; timing of approval for changes to existing approvals; permitting and legal processes relating to mining permits and permits; the benefits of the development potential of Argonaut’s properties; the future price of gold, copper and silver; the estimation of mineral reserves and resources; success of exploration activities; the impact of COVID-19, government responses to COVID-19 and the effectiveness of such responses; and exchange rate fluctuations. Except for statements of historical fact regarding Argonaut, certain information contained herein are forward-looking statements. Forward-looking statements are frequently identified by words such as “plan,” “expect,” “project,” “intend,” “believe,” “anticipate,” “estimate,” and other similar words, or statements about specific events or conditions “may,” “should” or “will” occur. Forward-looking statements are based on the opinions and estimates of management at the time the statements are made and are based on a number of assumptions and are 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 beyond Argonaut’s control, and there are no assurances that they will prove to be correct.
Factors that could cause actual results to differ materially from those anticipated in such forward-looking statements include: availability and changing financing conditions; the possibility of project cost overruns or unanticipated costs and expenses; fluctuations 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 permits and regulatory approvals; risks associated with international operations; fluctuating metal prices and exchange rates; changes in project parameters; the impact of COVID-19 and the impact and effectiveness of government responses to COVID-19; labor disputes; and other mining industry risks, including but not limited to the failure of any plant, equipment or process to perform as expected. These factors are discussed in more detail in Argonaut’s most recent annual information form and management’s most recent discussion and analysis filed on SEDAR, which also contain 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, the uncertainties they represent and the risks involved. Argonaut believes that the expectations reflected in these forward-looking statements are reasonable, however, there can be no assurance that these expectations will prove to be correct and undue reliance should not be placed on such forward-looking statements contained in this press release. 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 the forward-looking statements, there may be other factors that cause actions, events or results not to be anticipated, to be 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. Except as required by applicable securities laws, Argonaut undertakes no obligation to update any forward-looking statements if circumstances or management’s estimates or opinions should change. The reader is cautioned not to place undue reliance on any forward-looking statements. Statements regarding mineral reserve and resource estimates may also be considered forward-looking statements to the extent that they include estimates of mineralization that will be encountered as 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 exploration, mine development and production gold company. Its main assets are the El Castillo my and San Augustine mine that together form the El Castillo Complex in Durango, Mexicothe La Colorado mine clean Sonoran, Mexico and the Florida Canyon Mine in Nevada, United States. The Company also holds the construction-stage Magino project, which is at an advanced exploration stage Cerro del Gallo project and Ana Paula Project and several other exploration stage projects, all located in North America.
For more information contact:
Argonaut Gold Inc.
Corporate Development & Investor Relations
Email: [email protected]
SOURCE Argonaut Gold Inc.
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