Not for distribution to US news agencies or for dissemination in the United States.
TORONTO, Feb. 14 12, 2022 (GLOBE NEWSWIRE) — Argonaut Gold Inc. (TSX: AR) (“Argonaut” or the “Company”) today announced that it has entered into an agreement with a syndicate of underwriters led by BMO Capital Markets, pursuant to which the underwriters have agreed to purchase by way of private placement, 3,400,000 Canadian exploration expense (“CEE”) and 13,800,000 Canadian development expense (“CDF”) flow-through common shares (collectively , the “Flow-Through Common Shares”) of the Company, at a price of C$2.95 per CEE flow-through common share and C$2.54 per CDE flow-through common share, for gross proceeds of approximately C$45 million. In addition, the Company has also granted the underwriters an option, exercisable up to 48 hours prior to the closing of the offering, to purchase up to an additional 15% of the number of flow-through common shares, under the same percentages and at the same price as originally issued under the offer.
The Company intends to use the net proceeds of the offering for further exploration and development activities at the Company’s Magino project and for general corporate purposes.
The offering is expected to close on or about March 3, 2022 and is subject to Argonaut obtaining all necessary regulatory approvals, including the approval of the Toronto Stock Exchange.
The securities offered have not been registered under the US Securities Act of 1933, as amended, and may not be offered or sold in the United States absent registration or an applicable exemption from registration requirements. This press release does not constitute an offer to sell or the solicitation of an offer to buy and there will be no sale of the securities in any state in which such offer, solicitation or sale would be unlawful.
This press release contains certain “forward-looking statements” and “forward-looking information” under applicable Canadian securities laws regarding the business, operations, financial performance and condition of Argonaut. Forward-looking statements and forward-looking information in this press release include, but are not limited to, statements regarding the use of proceeds of the offering, the tax treatment of CDE and CEE flow-through shares and the timing of the waiver. to the CDE and CEE Expenses offer. Except for statements of historical fact regarding Argonaut, certain information contained herein constitutes forward-looking statements. Forward-looking statements are often characterized by words such as “plan”, “expect”, “project”, “intend”, “believe”, “anticipate”, “estimate” and other words similar, or statements that certain events or conditions “may” or “will” occur. Forward-looking statements are based on the opinions and estimates of Argonaut’s management as of the date the statements are made, and are based on a number of assumptions and subject to a variety of risks and uncertainties and other factors that could cause actual events or results to differ materially from those projected in the forward-looking statements. Many of these assumptions are based on factors and events beyond Argonaut’s control and there can be no assurance that they will prove to be correct. Factors that could cause actual results to differ materially from those anticipated by these forward-looking statements include risks in the mining industry, the spread of COVID-19 and the impact of government policies aimed at ameliorating COVID-19, the plant, equipment or process failure. to operate as planned, changes in market conditions, variations in ore grade or recovery rates, risks related to international operations, fluctuations in metal prices and exchange rates, changes in the parameters of the project, the possibility of project cost overruns or unforeseen costs and expenses and labor disputes. These factors are discussed in greater detail in (i) Argonaut’s most recent Annual Information Form and (ii) most recent MD&A, each of which is filed on Argonaut’s SEDAR profile and provides additional general assumptions as to related to these statements. Argonaut cautions that the foregoing list of important factors is not exhaustive. Investors and others who base their decisions on forward-looking statements should carefully consider the above factors and the uncertainties they represent and the risk they involve. Argonaut believes that the expectations reflected in these forward-looking statements are reasonable, but no assurance can be given that such expectations will prove to be correct and undue reliance should not be placed on the forward-looking statements included in this press release. These statements speak only as of the date hereof. Although Argonaut has attempted to identify important factors that could cause actual actions, events or results to differ materially from those described in the forward-looking statements, there may be other factors that cause actions, events or results are not anticipated, estimated or intended. There can be no assurance that forward-looking statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Argonaut undertakes no obligation to update forward-looking statements if circumstances or management’s estimates or opinions should change, except as required by applicable securities laws. Readers are cautioned not to place undue reliance on forward-looking statements. Statements regarding mineral reserves and resource estimates may also be considered forward-looking statements to the extent that they involve estimates of the mineralization that will be encountered if the property is developed.
Argonaut is a Canadian gold mining company engaged in exploration, mine development and production. Its principal assets are the El Castillo Mine and the San Agustin Mine, which together form the El Castillo Complex in Durango, Mexico, the La Colorada Mine in Sonora, Mexico and the Florida Canyon Mine in Nevada, United States. The Company also owns the Magino project in the construction phase, the Cerro del Gallo project in the advanced exploration phase and several other projects in the exploration phase, all located in North America.
For more information contact:
Argonaut Gold Inc.
Vice President, Corporate Development and Investor Relations
Email: [email protected]