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Argonaut Gold Announces C$4.0 Million Private Placement of Flow-Through Common Shares

Aug 20, 2019

Argonaut Gold announced it has entered into an agreement  to sell 1,176,500 common shares to a syndicate of underwriters headed by Cormark Securities Inc. in which the Underwriters shares qualify as "flow-through shares"  for the purposes of the Income Tax Act (Canada) at a price of C$3.40 per share.
 
The sale of the common shares to the Comark Securities agreement was for $4 million (Cdn.)made on a   "bought deal" private placement basis.
 
A bought deal is a securities offering in which an investment bank commits to buy the entire offering from the client company at a lower price than could be made via public markets.  
 
The Argonaut Gold will use the proceeds from the offering to incur "Canadian exploration expenses" under the Income Tax Act (Canada) at Argonaut's Ontario projects. The Company will renounce these expenses to the purchasers with an effective date of no later than December 31, 2019.
 
The offering is scheduled to close on or about September 10, 2019 and is subject to certain conditions including, but not limited to, the receipt of all necessary regulatory and other approvals including the approval of the TSX Exchange.
 
Further details on the above matters are set forth in the Argonaut's meeting materials.Their management information circular dated April 5th, 2019 and a report of voting results on resolutions raised at the meeting  are  is available on SEDAR on www.sedar.com.
 
The Magino mine property is a past producing underground gold mine located 40 kilometres northeast of Wawa, Ontario, approximately 14 kilometres southeast of the town of Dubreuilville. It also has several other exploration projects in Ontario.
 
Argonaut also has operating gold mines in Mexico - the El Castillo mine and San Agustin mine, which together form the El Castillo Complex in Durango, Mexico and the La Colorada mine in Sonora, Mexico.  The company also has advanced exploration projects in the San Antonio project in Baja California Sur, Mexico and the Cerro del Gallo project in Guanajuato, Mexico.