As per the agreement, Argonaut Gold will offer C$0.00001 in cash for each Prodigy share; representing C$1.08 ($1.01) in value for each share to acquire all of its common shares.
The company will also offer Prodigy shareholders 0.1042 of an Argonaut Gold share.
Prodigy’s Magino project in Ontario, with an indicated resource of over 223 million tonnes at 0.87 g/t, will now be operated by Argonaut Gold.
Argonaut Gold president and CEO Pete Dougherty commented that the Magino gold project has a continued resource growth and is a long-term production opportunity for Argonaut Gold shareholders.
"The Magino resource provides substantial flexibility for maximizing value creation using a higher grade cut-off," Dougherty added.
"This transaction is both highly attractive to Prodigy shareholders as well as significantly accretive to Argonaut Gold shareholders on all key financial and operational metrics.
