RBC Capital Markets Says Argonaut Secured Additional Liquidity After Selling Ana Paula Project 2022-12-06 10:14:44 AM ET (MT Newswires)
10:14 AM EST, 12/06/2022 (MT Newswires) -- RBC Capital Markets said Monday that it expects positive market reaction from Argonaut Gold Inc. (AR.TO)'s shares following the sale of its non-core Ana Paula project to Heliostar Metals Ltd. (HSTR.V).
Consideration comprises $10 million in cash and up to $20 million in future considerations. Argonaut also granted Heliostar an option to acquire the San Antonio project for $80 million to $150 million.
RBC said the cash consideration would provide additional near-term liquidity to help Argonaut fund the construction of its Magino project, where first gold is targeted in April 2023.
"Overall, we continue to view investor focus around advancement of Magino and balance sheet flexibility as the project approaches the final stages of construction," RBC said.
RBC gave Argonaut an outperform rating and a $1.25 price target.