Argonaut Gold to Pay $341 million For Prodigy Gold

Reuters reported that Argonaut Gold (TSX:AR) is buying Prodigy Gold Inc. (TSXV:PDG) for C$341 million, which will grant them access to control of Prodigy’s Magino project in Ontario.

Vancouver-based Prodigy’s Magino project, located in the Goudreau-Lochalsh gold district of the Wawa gold camp, contains indicated resources of 6.3 million ounces of gold.

The addition of the project, which is still in the preliminary economic assessment stage, could transform Argonaut into a gold producer with annual output of more than 500,000 ounces, Stonecap Securities analyst Christos Doulis said.

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