TORONTO, May 15, 2020 /CNW/ - Argonaut Gold
Inc. (TSX: AR) (the "Company", "Argonaut Gold" or
"Argonaut") notes that mining has been deemed an essential business
in Mexico and the Mexican federal
government has now outlined June 1,
2020 as the restart date for mining operations.
Therefore, Argonaut is preparing to restart operations on
June 1, 2020.
Pete Dougherty, President &
CEO stated: "We have implemented strict protocols for all employees
in our phased approach to bringing them back to work in an effort
to protect both our workforce and the communities near our
mines. We recognize that while mining has now been deemed an
essential business, the Mexico
federal government yesterday outlined June
1, 2020 as the date by which mining operations should
recommence."
Argonaut and Alio Gold Inc. ("Alio") have agreed to waive the
clause in the Arrangement Agreement that would allow either company
the option to terminate the transaction if an operation ceases
normal course business for more than 45 days.
Mark Backens, President & CEO
of Alio commented: "We must continue to protect the health and
safety of our workers and our communities. Both Argonaut and
Alio are committed to the merger of our companies, as we recognize
the long-term benefit to all stakeholders out weighs the near-term
impact of mine closures."
Pete Dougherty added: "In
discussions with Alio, we both agree the health and safety of our
workforce and our communities is paramount and the strong rationale
for the merger of our companies remains valid in spite of any
near-term disruptions to operations. Therefore, we both
agreed to waive the 45-day opt out clause to provide stakeholders
with clarity and remove uncertainty around the merger. We
expect the transaction to close in June."
Cautionary Note Regarding Forward-looking
Statements
This press release contains certain
"forward-looking statements" and "forward-looking information"
under applicable Canadian securities laws concerning the proposed
transaction and 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 with
respect to the COVID-19 pandemic, the impact of the pandemic on
Argonaut and the impact of government action aimed at ameliorating
the pandemic on the workforce, business and operations of Argonaut
and on its transaction with Alio Gold Inc.; statements with respect
to estimated production and mine life of the various mineral
projects of Argonaut; synergies and financial impact of completed
acquisitions; the benefits of the development potential of the
properties of Argonaut; the future price of gold, copper, and
silver; the estimation of mineral reserves and resources; the
realization of mineral reserve estimates; the timing and amount of
estimated future production; costs of production; success of
exploration activities; and currency exchange rate fluctuations.
Except for statements of historical fact relating to
Argonaut, certain information contained herein constitutes
forward-looking statements. Forward-looking statements are
frequently characterized by words such as "plan," "expect,"
"project," "intend," "believe," "anticipate", "estimate" and other
similar words, or statements that certain events or conditions
"may" or "will" occur. Forward-looking statements are based
on the opinions and estimates of management at the date the
statements are made, and are based on a number of assumptions and
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 that are not
within the control of Argonaut and there is no assurance they will
prove to be correct.
Factors that could cause actual results to vary materially from
results anticipated by such forward-looking statements include
changes in market conditions, the scope, duration and impact of the
COVID-19 pandemic, the scope, duration and impact of regulatory
responses to the pandemic on the employees, business and operations
of Argonaut and the broader market, variations in ore grade or
recovery rates, risks relating to international operations,
fluctuating metal prices and currency exchange rates, changes in
project parameters, the possibility of project cost overruns or
unanticipated costs and expenses, labour disputes and other risks
of the mining industry, failure of plant, equipment or processes to
operate as anticipated. Although Argonaut has attempted to
identify important factors that could cause actual actions, events
or results to differ materially from those described in
forward-looking statements, there may be other factors that cause
actions, events or results not to be anticipated, 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. Argonaut undertakes no obligation to update
forward-looking statements if circumstances or management's
estimates or opinions should change except as required by
applicable securities laws. The reader is cautioned not to
place undue reliance on forward-looking statements. Statements
concerning mineral reserve and resource estimates may also be
deemed to constitute forward-looking statements to the extent they
involve estimates of the mineralization that will be encountered if
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 gold
company engaged in exploration, mine development and
production. Its primary assets are the El Castillo mine and San Agustin mine, which together form the El
Castillo Complex in Durango,
Mexico and the La Colorada
mine in Sonora, Mexico.
Advanced exploration projects include the Cerro del Gallo project
in Guanajuato, Mexico and the
Magino project in Ontario,
Canada. The Company continues to hold the San Antonio advanced exploration project in
Baja California Sur, Mexico and
several other exploration stage projects, all of which are located
in North America.
For more information, contact:
Argonaut Gold Inc.
Dan Symons
Vice President, Investor Relations
Phone: 416-915-3107
Email: dan.symons@argonautgold.com
SOURCE Argonaut Gold Inc.