Argonaut Gold Inc. (TSX: AR) is targeting June 1 for a restart of operations after the Mexican federal government deemed mining to be an essential business.
President and CEO, Pete Dougherty, said Argonaut has moved quickly and safely following the Mexican government announcement.
“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,” Mr Dougherty said.
“We recognise 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.”
Mr Dougherty also revealed that Argonaut and Alio Gold Inc. 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.
“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,” Mr Dougherty said.
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.