Argonaut Gold will sell its Ana Paula gold project in Guerrero State, Mexico for $30 million in cash and shares to Heliostar.
Heliostar (Vancouver based) will pay
- $10 million upfront;
- $5 million in shares upon renewing the open-pit mining permit or obtaining a new underground mining permit;
- $2 million upon completion of a feasibility study or July 1, 2024 (whichever comes first);
- $3 million in cash and $2 million in cash or shares preceding the construction announcement; and
- $5 million plus $3 million in cash or shares preceding the announcement of commercial production.
Heliostar will then acquire all issued and outstanding shares of Aurea Mining, an Argonaut subsidiary that holds a 100% indirect interest in Ana Paula.
Argonaut and Heliostar have also entered into an option agreement for Heliostar to acquire 100% of the San Antonio gold project, also in Mexico.
Heliostar currently owns 100% of three early stage projects in Sonora. Heliostar’s flagship asset is the Unga Gold project on Unga and Popof Islands, in Alaska.
Argonaut will now concentrate on its ‘cornerstone asset’, the Magino gold mine. The first gold pour at Magino is scheduled for April 2023.