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Silver Standard Resources
SSRI announces today that it has
entered into a definitive agreement with Argonaut Gold
ARGNF
to sell 100% of its San Agustin project in Durango, Mexico
("San Agustin") for an aggregate consideration of approximately $75
million. Argonaut is a U.S.-based company listed on the Toronto Stock
Exchange (the "TSX").
"This transaction demonstrates the value within our portfolio beyond our
mine and development projects," said John Smith, President and CEO.
"Selling San Agustin adds to our balance sheet strength for funding
future growth. We continue to focus on optimizing our business to
deliver long-term, sustainable shareholder return."
Under the terms of the definitive agreement, Silver Standard will sell
its interest in San Agustin for aggregate consideration of:
$15 million cash payable at closing;
$30 million of Argonaut shares issued at closing (based on the 5-day
volume weighted average sale price for Argonaut shares trading on the
TSX prior to signing the definitive agreement);
$10 million cash payable six months after signing the definitive
agreement; and
$20 million cash payable eighteen months after signing the definitive
agreement.
Silver Standard will also have a 2.0% NSR royalty on sulphide ore
produced from
See full press release© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
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