TORONTO, March 31, 2021 /CNW/ - Argonaut Gold Inc.
(TSX: AR) (the "Company", "Argonaut Gold" or "Argonaut") is pleased
to announce it has completed a private placement of 4,255,319
common shares, issued at a price of C$2.35 per common share, representing an 8.3%
premium to the closing price on March 30,
2021, for gross proceeds of C$10,000,000 with Ausenco Engineering Canada Inc.
("Ausenco"). Argonaut Gold and Ausenco previously executed a
fixed-bid engineering, procurement, construction and commission
contract for the construction of the Magino processing facility and
other parts of the Magino construction project (see press release
dated January 4, 2021) at which time
a private placement was contemplated. The Company intends to
use the proceeds for Magino construction activities and general
corporate purposes.
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Pete Dougherty, President and CEO
of Argonaut stated: "The private placement by Ausenco aligns our
respective companies, as we work together to advance and unlock
value of the Magino project. We are very pleased to have a
partner with 'skin in the game' as we continue to advance Magino's
construction."
Zimi Meka, CEO and Managing Director of Ausenco commented: "With
our intimate knowledge of the Magino project, we are excited to
partner with Argonaut in building Canada's next gold mine. We are pleased
to be a shareholder of Argonaut and look forward to working with
Peter and his team to maximise the value of Magino for all
shareholders."
Magino Project Construction Update
Argonaut is also pleased to provide a construction update at its
Magino project in Ontario,
Canada. The overall Magino construction project is tracking
on schedule and ahead of schedule in relation to logging
activities. The Company has secured all long lead items and is
actively preparing the site for earthworks, which are expected to
commence during the second quarter 2021.
Argonaut is very pleased to report that 100% of the process
plant site has been cleared, which allows for earthworks to begin
in this area. Earthworks in the process plant site area will
be followed by concrete pouring and steel erection so that the
Company is in a position to enclose the process facility building
prior to next winter, allowing construction to continue on the
recovery plant.
Magino project activities since commencing construction
include:
- Logging;
- Pioneering of roads and worksites;
- Earthworks to level the area of the process facility site for
preparation of concrete pouring for the foundation;
- Installed construction offices;
- Completed the pad for a 144 person camp;
- Installation of the first 88 person camp units; and
- Placed orders of long lead time equipment.
Cautionary Note Regarding Forward-looking
Statements
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
Inc. ("Argonaut" or "Argonaut Gold"). Forward-looking statements
and forward-looking information include, but are not limited to
statements with respect to the Magino construction project
schedule; permitting and legal processes in relation to mining
permitting and approvals; estimated production and mine life
of the various mineral projects of Argonaut; the ability to obtain
permits for operations; synergies; the realization of mineral
reserve estimates; the timing and amount of estimated future
production; costs of production; 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; success
of exploration activities; 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", "should" or "will" occur.
Forward-looking statements 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.
Factors that could cause actual results to vary materially from
results anticipated by such forward-looking statements include
variations in ore grade or recovery rates, changes in market
conditions, risks relating to the availability and timeliness of
permitting and governmental approvals; 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, labour
disputes and other risks of the mining industry, failure of plant,
equipment or processes to operate as anticipated.
These factors are discussed in greater detail in Argonaut's most
recent Annual Information Form and in the most recent Management's
Discussion and Analysis filed on SEDAR, which also 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 press release
should not be unduly relied upon. These statements speak only as of
the date of this press release.
Although Argonaut 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. 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. 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 on the Magino project, please see the
report as listed below on the Company's website or on
www.sedar.com:
Magino Gold
Project
|
Feasibility Study
Technical Report on the Magino Project, Ontario, Canada dated
December 21, 2017 (effective date November 8, 2017)
|
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.
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.