Argonaut Gold Announces Closing of C$17.5 Million "Bought Deal" Private Placement of Flow-Through Shares
Summary
The Private Placement was conducted pursuant to the terms and conditions of an underwriting agreement entered into between the Company and a syndicate of underwriters co-led by Scotiabank and Cormark Securities Inc., and including BMO Nesbitt Burns Inc., Desjardins Securities Inc., Echelon Wealth Partners Inc., Laurentian Bank Securities Inc., Paradigm Capital Inc. and RBC Dominion Securities Inc.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" or "Canadian development expenses" that qualify as "accelerated Canadian development expenses", as applicable, as such terms are defined in the Income Tax Act (Canada) (the "Qualifying Expenditures") related to the Companys Magino Project on or before: (i) December 31, 2024 in respect of the CEE Flow-Through Shares; and (ii) December 31, 2023 in respect of the CDE Flow-Through Shares. All Qualifying Expenditures will be renounced in favour of the subscribers of the Flow-Through Shares with an effective date not later than December 31, 2023.The Private Placement remains subject to final approval of the Toronto Stock Exchange (the "TSX"). Focused on becoming a low-cost mid-tier gold producer, the Company is in the final stages of construction at its Magino Project, located in Ontario, Canada. Factors that could cause actual results to vary materially from results anticipated by such forward-looking statements include risks of the mining industry, 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. Argonaut does not undertake any obligation to update forward looking statements if circumstances or managements estimates or opinions should change except as required by applicable securities laws.