Argonaut Gold Inc. Announces C$110 Million Bought Deal Financing

TORONTO, July 6, 2020 – Argonaut Gold Inc. (TSX: AR) (the "Company", “Argonaut Gold” or “Argonaut”) has announced today that it has entered into an agreement with a syndicate of underwriters led by BMO Capital Markets, under which the underwriters have agreed to buy on bought deal basis 43,138,000 common shares (the “Common Shares”), at a price of C$2.55 per Common Share for gross proceeds of approximately C$110 million (the “Offering”). The Company has granted the Underwriters an option, exercisable at the offering price for a period of 30 days following the closing of the Offering, to purchase up to an additional 15% of the Offering to cover over-allotments, if any. The Offering is expected to close on or about July 23, 2020 and is subject to Argonaut Gold receiving all necessary regulatory approvals.

 

Argonaut intends to use the net proceeds of the Offering for the advancement of the Company’s Magino project and for general corporate purposes.

 

The Common Shares will be offered by way of a short form prospectus in all provinces, excluding Quebec and may also be offered by way of private placement in the United States.  The Offering is subject to typical conditions, including, but not limited to, receipt of approval from the Toronto Stock Exchange.

 

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. 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 continues to hold the San Antonio advanced exploration project in Baja California Sur, Mexico 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, Investor Relations

Phone: 416-915-3107

Email: dan.symons@argonautgold.com