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Trading Symbol:TSX: AR
TORONTO, Sept. 18, 2020 /CNW/ - Argonaut Gold Inc. (TSX: AR) ("Argonaut" or the "Company") is pleased to announce that it has entered into an agreement with a syndicate of underwriters led by Canaccord Genuity Corp. (collectively, the "Underwriters") in connection with a "bought deal" private placement financing (the "Offering") of an aggregate of 2,611,000 common shares of the Company that will qualify as "flow-through shares" (within the meaning of subsection 66(15) of the Income Tax Act (Canada)) (the "Flow-Through Shares").
The Flow-Through Shares will be issued at a price of C$3.83 for aggregate gross proceeds of C$10,000,130. In addition, the Company will grant the Underwriters an option (the "Underwriter's Option") to sell an additional 391,650 Flow-Through Shares, at the Issue Price for additional gross proceeds of C$1,500,019.50 exercisable 48 hours prior to the Closing Date.
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" that will qualify as "flow- through mining expenditures" as such terms are defined in the Income Tax Act (Canada) (the "Qualifying Expenditures") related to the Company's projects in Ontario on or before December 31, 2021. All Qualifying Expenditures will be renounced in favour of the subscribers of the Flow-Through Shares effective December 31, 2020.
The Offering is expected to close on or about October 14, 2020 and is subject to certain conditions including, but not limited to, the receipt of all necessary approvals including the approval of the Toronto Stock Exchange and the applicable securities regulatory authorities. The Flow-Through Shares to be issued under the Offering will be subject to a hold period in Canada expiring four months and one day from the closing date of the Offering.