/THIS NEWS RELEASE IS NOT FOR DISTRIBUTION TO
U.S. NEWSWIRE SERVICES OR FOR DISSEMINATION IN THE
UNITED STATES/
Trading Symbol: TSX:AR
TORONTO, Feb. 17, 2021 /CNW/ - Argonaut Gold Inc. (TSX:
AR) ("Argonaut" or the "Company") is pleased to
announce that it has closed its previously-announced offering of
"flow-through shares" with respect to "Canadian development
expenses" ("CDE") within the meaning of the Income Tax Act
(Canada) and the regulations
thereunder in force as of the date hereof (the "Tax Act")
(the "CDE Flow-Through Shares") at a price of $2.82 per CDE Flow-Through Share for gross
proceeds of $26,450,232.30 (the
"Offering"). The Offering was completed in two concurrent
tranches, whereby: (i) an aggregate of 6,276,515 CDE Flow-Through
Shares were issued and qualified for distribution to the public
under the Prospectus (as defined below), and (ii) an aggregate of
3,103,000 CDE Flow-Through Shares were issued on a private
placement basis.
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The Offering was completed pursuant to an underwriting agreement
dated January 29, 2021 (as amended on
February 17, 2021) entered into among
the Company and a syndicate of underwriters led by Cormark
Securities Inc., and including Canaccord Genuity Corp., Echelon
Wealth Partners Inc., Laurentian Bank Securities Inc., Paradigm
Capital Inc., BMO Nesbitt Burns Inc., Scotia Capital Inc., and
Stifel Nicolaus Canada Inc.
The proceeds from the sale of the CDE Flow-Through Shares will
be used on development expenses on the Magino project as
permitted under the Tax Act to qualify as CDE. The Company
will renounce all the CDE
development expenses in favour of the
subscribers of the CDE Flow-Through Shares effective
on or before December 31, 2021.
The Company filed a short form prospectus (the
"Prospectus") in each of the provinces of
Canada, except for Québec, pursuant to National Instrument
44-101 – Short Form Prospectus Distributions to qualify for
distribution the CDE Flow-Through Shares offered pursuant to the
public tranche of the Offering. Copies of the final short form
prospectus and documents incorporated by reference therein are
available electronically on SEDAR (www.sedar.com) under Argonaut's
issuer profile. The CDE Flow-Through Shares issued on a private
placement basis are subject to a four month hold period in
Canada.
The securities offered have not been, and will not be,
registered under the U.S. Securities Act or any U.S. state
securities laws, and may not be offered or sold in
the United States
or to, or for the account or benefit of, United
States persons absent registration or any applicable exemption from
the registration requirements of the U.S. Securities Act and
applicable U.S. state securities laws. This press release shall not
constitute an offer to sell or the solicitation of an offer to
buy securities in the United
States, nor will there be any sale of these 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. 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. The
Company also holds the construction stage Magino project, the
advanced exploration stage Cerro del
Gallo project and several other exploration
stage projects, all of which are
located in North America.
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 in this press
release include, but are not limited to, statements with respect to
the use of proceeds of the Offering, tax treatment of the CDE Flow
Through Shares, timing of the renunciation of the CDE development
expenses. 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 more information, contact:
Argonaut Gold Inc.
Dan
Symons
Vice President, Corporate Development & Investor Relations
Phone: 416-915-3107
Email: dan.symons@argonautgold.com
SOURCE Argonaut Gold Inc.
SOURCE Argonaut Gold Inc.