Argonaut Gold announced that the Mexican Federal Government issued a degree to temporarily suspend all non-essential businesses, including mining, until April 30, 2020 due to COVID-19.
TORONTO, April 1, 2020 /CNW/ – Argonaut Gold Inc. (TSX: AR) (the “Company”, “Argonaut Gold” or “Argonaut”) announces that the Mexican federal government has mandated that all non-essential businesses, including mining, temporary suspend operations until April 30 due to the COVID-19 virus. Argonaut will work towards an orderly suspension of mining, crushing and stacking activities. Given that Argonaut operates heap leach mines, the Company expects metal production and metal sales will continue during the temporary suspension of mining activities.
Argonaut is following government health protocols, has implemented additional protocols for the protection of its workforce and is closely monitoring the situation with local health authorities. To date, there are no known or suspected cases of COVID-19 infection at any of the Company’s operations, projects or corporate offices.
Pete Dougherty, President & CEO stated: “It is important to recognize the seriousness of the COVID-19 pandemic and while we have not experienced a known or suspected case in the Company to date, we have been and will continue to take precautionary measures. The health and safety of our workforce, their families and the communities in which we operate is paramount and we continue to be dedicated to maintaining a safe work environment. We must continue to process pregnant solution coming from the heap leach pads for the safety of the environment. Therefore, we expect to continue metal production and sales.”
The Company’s expects its previously announced friendly, at-market merger with Alio Gold Inc. (“Alio”) will continue (see press release dated March 30, 2020). With both companies understanding the unique and unprecedented circumstances surrounding the COVID-19 outbreak, in the Plan of Arrangement, each of Argonaut and Alio have the option to withdraw from the transaction if the other company’s mining operations are suspended for 45 days.
Argonaut is withdrawing its full year guidance across all operations until further notice due to the uncertainty with respect to future developments of the COVID-19 outbreak, including the duration, severity and scope of the outbreak, the actions taken to contain or treat the outbreak and potential impacts on mining operations.
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 San Antonio project in Baja California Sur, Mexico, the Cerro del Gallo project in Guanajuato, Mexico and the Magino project in Ontario, Canada. The Company also has several exploration stage projects, all of which are located in North America.
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