/NOT FOR DISTRIBUTION TO U.S. NEWS WIRE
SERVICES OR FOR DISSEMINATION IN THE
UNITED STATES/
Trading Symbol: TSX: AR
TORONTO, Sept. 18, 2020 /CNW/ - Argonaut Gold Inc. (TSX:
AR) ("Argonaut" or the "Company") is pleased to
announce that it has entered into an agreement with a syndicate of
underwriters led by Canaccord Genuity Corp. (collectively, the
"Underwriters") in connection with a "bought deal" private
placement financing (the "Offering") of an aggregate of
2,611,000 common shares of the Company that will qualify as
"flow-through shares" (within the meaning of subsection 66(15) of
the Income Tax Act (Canada)) (the "Flow-Through
Shares").
The Flow-Through Shares will be issued at a price of
C$3.83 for aggregate gross proceeds
of C$10,000,130. In addition, the
Company will grant the Underwriters an option (the
"Underwriter's Option") to sell an additional 391,650
Flow-Through Shares, at the Issue Price for additional gross
proceeds of C$1,500,019.50
exercisable 48 hours prior to the Closing Date.
The gross proceeds from the issue and sale of the Flow-Through
Shares will be used by the Company to incur eligible "Canadian
exploration expenses" that will qualify as "flow- through mining
expenditures" as such terms are defined in the Income Tax
Act (Canada) (the
"Qualifying Expenditures") related to the Company's projects
in Ontario on or before
December 31, 2021. All Qualifying
Expenditures will be renounced in favour of the subscribers of the
Flow-Through Shares effective December 31,
2020.
The Offering is expected to close on or about October 14, 2020 and is subject to certain
conditions including, but not limited to, the receipt of all
necessary approvals including the approval of the Toronto Stock
Exchange and the applicable securities regulatory authorities. The
Flow-Through Shares to be issued under the Offering will be subject
to a hold period in Canada
expiring four months and one day from the closing date of the
Offering.
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 State in which such offer,
solicitation or sale would be unlawful.
About Argonaut
Argonaut Gold is a Canadian gold company engaged in
exploration, mine development and production. Its primary assets
are the El Castillo mine and
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,
USA. Advanced exploration projects include the Magino
project in Ontario, Canada, the
Cerro del Gallo project in Guanajuato,
Mexico and the Ana Paula project in Guerrero, Mexico. The Company holds several
exploration stage projects, all of which are located in
North America.
Cautionary Note Regarding Forward-Looking Information
This press release contains certain "forward-looking
statements" and "forward-looking information" under applicable
Canadian securities laws concerning the business, operations and
financial performance and condition of Argonaut Gold. Forward-
looking statements and forward-looking information include, but are
not limited to, statements with respect to estimated production and
mine life of the various mineral projects of Argonaut; expectations
with respect to future cash flows from operations, net debt and
financial results; the successful completion of proposed
acquisitions; metal or mineral recoveries; synergies and financial
impact of completed acquisitions; the benefits of the development
potential of the properties of Argonaut ; the future price of gold,
copper, and silver; the estimation of mineral reserves and
resources; the realization of mineral reserve estimates; the timing
and amount of estimated future production; costs of production;
success of exploration activities; market volatility and
disruptions in many aspects of Argonaut's business due to a
pandemic virus outbreak, such as COVID-19, resulting from
government policies restricting mobility assembly, or contact with,
employees and suppliers across the global supply chain; and
currency exchange rate fluctuations. Except for statements of
historical fact relating to Argonaut, certain information contained
herein constitutes forward-looking statements. Forward-looking
statements are frequently characterized by words such as "plan,"
"expect," "project," "intend," "believe," "anticipate", "estimate"
and other similar words, or statements that certain events or
conditions "may" or "will" occur. Forward-looking statements are
based on the opinions and estimates of the management of Argonaut
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. Factors that could cause actual results
to vary materially from results anticipated by such forward-looking
statements include risks of the mining industry, the spread of
COVID-19 and the impact of government policies to ameliorate
COVID-19, failure of plant, equipment or processes to operate as
anticipated, changes in market conditions, variations in ore grade
or recovery rates, risks relating to international operations,
fluctuating metal prices and currency exchange rates, changes in
project parameters, the possibility of project cost overruns or
unanticipated costs and expenses and labour disputes. These factors
are discussed in greater detail in Argonaut's (i) most recent
Annual Information Forms, and (ii) most recent Management
Discussion and Analysis, which are each filed on Argonaut's SEDAR
profile and provide additional general assumptions in connection
with these statements. Argonaut cautions that the foregoing list of
important factors is not exhaustive. Investors and others who base
themselves on forward-looking statements should carefully consider
the above factors as well as the uncertainties they represent and
the risk they entail. Argonaut 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
presentation should not be unduly relied upon. These statements
speak only as of the date of this presentation. Although Argonaut
have 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. 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 any obligation
to update forward-looking statements if circumstances or
management's estimates or opinions should change except as required
by applicable securities laws. The reader is cautioned not to place
undue reliance on forward-looking statements. Statements concerning
mineral reserve and resource estimates may also be deemed to
constitute forward-looking statements to the extent they involve
estimates of the mineralization that will be encountered if the
property is developed. Comparative market information is as of a
date prior to the date of this document.
SOURCE Argonaut Gold Inc.