Argonaut taps Ausenco Engineering for Magino facility construction

Argonaut Gold Inc. said Jan. 4 that it inked a fixed bid engineering, procurement, construction and commissioning contract with Ausenco Engineering Canada Inc. for the construction of the processing facility and other parts of the Magino gold project in Ontario.

The contract is valued at about 40% of Magino's capital estimate of between C$480 million and C$510 million.

The company is expecting the closure plan to be submitted by the Ontario province this January, which will allow for construction to begin.

Meanwhile, Argonaut and AP Mining have amended the agreement for the sale of the Ana Paula gold project in Mexico to allow more time to meet the regulatory and government approvals needed for closing. The company anticipates completing the required approvals in the first quarter.

AP Mining has agreed to pay an additional $1 million in 15 months from the closing date and reimburse all of Argonaut's expenses associated with Ana Paula incurred between Jan. 1 and the closing of the transaction.