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Austral Gold bids for Toronto junior explorer

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Lightly traded Chilean gold producer Austral Gold (ASX:AGD) will acquire a Toronto listed junior exploration company Argentex Mining Corporation (TSXV:ATX; OTCQB: AGXMF) in a proposed share acquisition.

Argentex Shareholders will receive 0.5651 shares in Austral Gold valuing the former at C$0.08 per share or C$5.8 million in total.

Austral Gold's Guanaco mine in Chile produced 51,534 ounces in line with guidance of over 50,000 ounces at an all-in sustaining cost (AISC) of just US$771/AuEq ounce, and for the full financial year, AISC of US$694/AuEq ounce.

This saw cash proceeds from the sale of gold and silver of US$12.4 million for the June quarter and a total cash position of US$7 million as at 30 June 2015.

The plum for Austral Gold is Argentex's Pingüino silver-gold project in the Santa Cruz Province of Argentina includes 26.7 million silver-equivalent-ounces in the Indicated category at grades of 103.4 g/t silver and 0.58 g/t gold.

It is aligned along the Pingüino system where over 70 individual vein segments have been identified with a combined strike length of over 113 line kilometres.

A Toronto listing is also on the cards for Austral Gold.

 

Proactive Investors Australia is the market leader in producing news, articles and research reports on ASX emerging companies with distribution in Australia, UK, North America and Hong Kong / China.

 

Quick facts: Austral Gold Limited

Price: 0.23 AUD

ASX:AGD
Market: ASX
Market Cap: $130.2 m
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