There were multiple reasons why Argo decided not to proceed with their option.
But first, rather than focus on why Argo left the deal, how about asking why Argo signed the deal in the first place. If MXSG was so obvious a scam as you have stated, then Argo would never have signed a deal at all. It is clear from that initial agreement that MXSG is a legit operation. We can argue about the grades of Au and Ag they have in the ground over there. But you cannot argue that the company is a scam.
"Now why did Argo pack up their toys and leave the playground again?"
1. There was a change in executive management just just prior to a decision they needed to make regarding continuing on with the exploration. The new management wanted to refocus and retrench the company, rather than expand.
2. Gold was getting hammered at the time and Argo stated in their letter to MXSG as the principal for declining to continue that gold had fallen below prices which they were comfortable with.
3. MXSG had previously drilled in a few spots and found very good results. Argo drilled in and around those locations, so as to be able to potentially confirm MXSG's previous results. They drilled in completely different locations with ok results. But not necessarily ok given the current price of gold at the time.
Their decision to not continue in the agreement was a huge mistake IMO. Right after they declined, gold started its rise. And our CEO went hunting for another partner. It was all to our benefit, as MarMar has already proven to be an excellent partner and the progress to date on setup of the leach operation has been extraordinarily fast.
