Argonaut raises C$15 million for Magino gold exploration

Argonaut Gold (TSX: AR) is raising C$15 million through the issuance of flow-through shares. The proceeds will be spent on exploration at the Magino gold project.

Magino, site of a former mine, is located about 40 km northeast of Wawa, Ontario. Development is underway with the second quarter of 2023 the target for first gold production. Argonaut recently put the last part of the financing puzzle together to take the project through completion.

With the help of a syndicate led by Cormark Securities, Argonaut will issue almost 31.3 million flow-through shares at a price of C$0.48 each for gross proceeds of C$15 million.

The underwriters have also been granted an option for an additional 15%, exercisable in whole or part up to 48 hours prior to the closing of the offering. Closing is expected on or about Nov. 17, 2022.

Construction at Magino is about 70% complete. Work has started on the second stage of the tailings management facility, and all major process equipment have been placed in the mill.

Pumping, piping and electric systems are being installed and winterized. Four permanent generators have been installed.