/NOT FOR DISTRIBUTION TO U.S. NEWS WIRE
SERVICES OR FOR DISSEMINATION IN THE
UNITED STATES/
Trading Symbol: TSX: AR
TORONTO, Oct. 14, 2020 /CNW/ - Argonaut Gold Inc. (TSX:
AR) ("Argonaut" or the "Company") is pleased to
announce that it has closed its previously announced "bought deal"
private placement of an aggregate of 3,002,650 common shares in the
capital 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") at a price of C$3.83 per Flow-Through Share for aggregate gross
proceeds of C$11,500,149.50,
including full exercise of the underwriters' option (the
"Offering"). The Flow-Through Shares were offered and sold
through a syndicate of underwriters led by Canaccord Genuity
Corp.
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 was made by way of private placement in
Canada pursuant to applicable
exemptions from the prospectus requirements under applicable
Canadian securities laws. The Flow-Through Shares issued under the
Offering are subject to a hold period under applicable Canadian
securities laws which will expire on February 15, 2021.
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 the use of
proceeds of the Offering; the timing and ability of the Company to
obtain final approval of the Offering from the Toronto Stock
Exchange; the tax treatment of the Flow-Through Shares; the timing
for the Qualifying Expenditures to be renounced in favour of the
subscribers; 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.
For further information please contact:
Dan Symons
VP, Corporate Development & Investor Relations
Argonaut Gold Inc.
Tel: 416-915-3107
dan.symons@argonautgold.com
Source: Argonaut Gold Inc.
SOURCE Argonaut Gold Inc.