Primero to sell Cerro del Gallo project to Arg­onaut

Stockwatch Daily - - MINES & METALS -

An anony­mous di­rec­tor re­ports

PRIMERO MIN­ING Corp. has en­tered into an agree­ment with Arg­onaut Gold Inc. to sell its Cerro del Gallo devel­op­ment project lo­cated in the state of Gua­na­ju­ato in cen­tral Mex­ico.

Un­der the terms of the agree­ment, Arg­onaut will ac­quire all of the is­sued and out­stand­ing shares of San An­ton Re­source Corp., the in­di­rect owner of the project, from Primero. In ex­change, Primero will re­ceive con­sid­er­a­tion of $15-mil­lion in cash.

Primero ex­pects to use the pro­ceeds from the trans­ac­tion to re­duce the com­pany’s to­tal out­stand­ing debt po­si­tion. The trans­ac­tion is sub­ject to cus­tom­ary clos­ing con­di­tions and is ex­pected to close by the end of this month. Sco­tia­bank acted as fi­nan­cial ad­viser to Primero.

About Primero Min­ing Corp.

Primero Min­ing is a Cana­dian-based pre­cious metal pro­ducer that owns 100 per cent of the San Di­mas gold-sil­ver mine and the Cerro del Gallo gold-sil­ver-cop­per devel­op­ment project in Mex­ico.

We seek Safe Har­bor.

Joseph Fran­cis Con­way, David Robert De­mers, Grant Arnold Edey, Pa­tri­cia A Fortier, Peter Bradley Marchant, Wade Don­ald Ne­smith, Robert Al­lan Quar­ter­main, Michael E Ri­ley

(P) Shares: 192,268,433

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