Argo Blockchain inks letter of intent to acquire land for new mining facility

() said it has entered a non-binding letter of intent (LOI) with DPN LLC setting out terms to acquire 320 acres of land in West Texas, US, where it intends to build a new 200-megawatt cryptocurrency mining facility in the next 12 months.

The company said when completed the facility will provide it with electricity at some of the lowest rates in the world with the majority coming from renewable sources. Argo said the land will provide access to up to 800 megawatts of electrical power.

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The acquisition will cost a total of US$17.5mln (£12.7mln) which will be paid in Argo shares. DPN will receive US$5mln worth of shares on completion of the agreement, while the remaining US$12.5mln worth of shares will be paid in instalments as contractual milestones are fulfilled.

Argo also said that as part of the project it will gain access to a pre-negotiated US$100mln credit facility at competitive rates, which it said will provide it with sufficient debt capital to build out the facility and further expand its mining fleet to upscale its operations and capacity.

“We are incredibly excited about this proposed acquisition. It gives Argo tremendous control over its mining operations, as well as significant capacity for expansion. In addition, we have been able to secure access to some of the cheapest renewable energy worldwide in a location where innovation in new technologies is encouraged and incentivised”, Argo chief executive Peter Wall said in a statement.