TORONTO, ONTARIO–(Nov. 2, 2016) – Argonaut Gold Inc. (TSX:AR) (the “Company”, “Argonaut Gold” or “Argonaut”) is pleased to announce the board of directors has approved to proceed with construction of the San Agustin project in Durango, Mexico (approximately 10 kilometres from the El Castillo mine). The Company also announces receipt of regulatory approval for the Change in Use of Soil permit, the last significant permit required to commence construction. All dollar amounts are expressed in United States dollars unless otherwise specified.
The Company anticipates first gold production from San Agustin during the third quarter of 2017. The Company is able to fund all of its ongoing commitments at its existing operations and San Agustin’s initial capital of $43 million through the September 30, 2016 cash balance of $50.4 million, anticipated cash flow from operations and its undrawn $30 million corporate revolving credit facility.