RE:RE:RE:RE:RE:FYIARNGFInvestor wrote: This is what I received from IR on Ana Paula or San Antonio: The proceeds or optionality will go into newco
Joanna Longo| Investor Relations
Subject: Question on Acquisition of Argonaut Gold
My question is what happens to the proceeds from the Heliostar deal? Specifically the three year option agreement for 100% of the San Antonio project. Will this be part of SpinCo?
Yes, unfortunately that's the conclusion I came to as the agreement is for Alamos to purchase Argonaut rather than just Magino, and the Spinco is effectively the stuff that wasn't of top or practical value to Alamos, and perhaps Richard Young's way of keeping his job and helping to sell the transaction to shareholders, as they'd still have the legacy mines. It's a no brainer for Alamos and Argonaut to have merged given the synergies between Island Gold and Magino, but for Alamos to have effectively recouped the entire purchase price through the synergies of the transaction, potentially collect in excess of $250M from Heliostar (maybe unlikely, though they'd get the rights to San Antonio back if not permitted), and ultimately then print money for free on any FCF from Magino, is kind of insane, and shows how desperate a position Argonaut was in. It's a really sad outcome for AR shareholders, though better than bankruptcy, I guess.