Over 90% of Castle Gold‘s (CSG-V) shares have been tendered to Argonaut Gold’s takeover offer of $1.29 per share.
Privately held Argonaut says it will pay for its 78.34 million shares or 91.25% of Castle Gold by Jan. 4 in a deal valued at about $112 million on a fully diluted basis.
Castle Gold owns 100% of the El Castillo gold mine in Mexico and a 50% interest in the El Sastre gold mine in Guatemala. It is also advancing exploration and development work at its La Fortuna gold-silver-copper project in Mexico.
The majority of Castle Gold’s production comes from the El Castillo mine in Mexico’s Durango state. In the third quarter the mine produced 2.6 million tonnes of ore grading 0.42 gram gold per tonne for 7,655 oz. gold.
El Castillo’s proven and probable reserves stand at 46.8 million tonnes grading 0.5 gram gold for contained gold of 752,000 ounces.
At La Fortuna, Castle Gold’s flagship exploration project, it has delineated a measured and indicated resource of 4.8 million tonnes grading 1.98 grams gold per tonne.
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