/NOT FOR DISTRIBUTION TO U.S. NEWS WIRE
SERVICES OR DISSEMINATION IN THE UNITED
STATES/
TORONTO, March 21, 2017 /CNW/ - Argonaut Gold Inc. (TSX:
AR) (the "Company", "Argonaut Gold" or
"Argonaut") is pleased to announce that the syndicate of
underwriters led by BMO Capital Markets (collectively, the
"Underwriters") have partially exercised their
over-allotment option (the "Over-Allotment Option") to
acquire an additional 2,050,000 common shares of the Company
("Common Shares") at a price of C$2.40 per Common Share for additional gross
proceeds of C$4,920,000.
The partial exercise of the Over-Allotment Option is expected to
close on or about March 22, 2017.
The Over-Allotment Option was granted to the Underwriters in
connection with Argonaut Gold's previously announced "bought deal"
public offering of 16,700,000 Common Shares at a price of
C$2.40 per Common Share for aggregate
gross proceeds of C$40,080,000, which
closed on March 15, 2017 (the
"Offering"). Under the terms of the Offering, the
Underwriters were granted the Over-Allotment Option, which is
exercisable in whole or in part for a period of 30 days following
the closing date of the Offering, to purchase up to an additional
2,505,000 Common Shares at a price of C$2.40 per Common Share for market stabilization
purposes and to cover over-allotments, if any.
The Common Shares issued under the Offering (including pursuant
to the Over-Allotment Option) were offered by way of a short form
prospectus dated March 7, 2017 in
each of the provinces and territories of Canada, except Québec. Copies of the final
short form prospectus and documents incorporated by reference
therein are available electronically under Argonaut's issuer
profile on SEDAR at www.sedar.com.
The securities offered have not been registered under the U.S.
Securities Act of 1933, as amended, and may not be offered or sold
in the United States absent
registration or an applicable exemption from the registration
requirements. This press release shall not constitute an offer to
sell or the solicitation of an offer to buy nor shall there be any
sale of the securities in any jurisdiction in which such offer,
solicitation or sale would be unlawful.
About Argonaut Gold
Argonaut Gold is a Canadian gold company engaged in exploration,
mine development and production activities. Its primary
assets are the production stage El
Castillo mine and the construction stage San Agustin project in Durango, Mexico and the production stage
La Colorada mine in Sonora, Mexico. Advanced exploration
stage projects include the San
Antonio project in Baja California
Sur, Mexico, and the Magino project in Ontario, Canada. The Company also has
several exploration stage projects, all of which are located in
North America.
Cautionary Note Regarding Forward-Looking Statements
This press release contains certain "forward-looking statements"
and "forward-looking information" under applicable Canadian
securities laws concerning, among other things, the timing and
ability of the Company to close the Over-Allotment Option, if at
all; the timing and ability of the Company to satisfy the closing
conditions of the Over-Allotment Option, if at all; and the use of
proceeds of the Offering. These "forward-looking statements" and
"forward-looking information" are based on the opinions and
estimates of management at 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 that are not within the control of Argonaut and
there is no assurance they will prove to be correct. Although
Argonaut Gold has attempted to identify important factors that
could cause actual actions, events or results to differ materially
from those described in forward-looking statements, there may be
other factors that cause actions, events or results not to be
anticipated, estimated or intended. Argonaut Gold believes that the
expectations reflected in those forward-looking statements are
reasonable, but no assurance can be given that these expectations
will prove to be correct and such forward-looking statements
included in this press release should not be unduly relied upon.
These statements speak only as of the date of this press release.
The Company undertakes no obligation to publicly update or revise
any forward-looking statements, whether as a result of new
information, future events or otherwise, other than as required by
applicable law.
SOURCE Argonaut Gold Ltd.