Argentium Resources Inc. Announces Brokered Private Placement to Raise up to $2 million
CNSX: AOK
TORONTO, March 1, 2012 /CNW/ - Argentium Resources Inc. ("Argentium" or the "Company") announces the appointment of Union Securities Ltd. ("Union") to act as its agent, on a commercially reasonable basis, to offer, by way of a brokered private placement (the "Private Placement"), flow-through units (each, a "Flow-Through Unit") issued at a purchase price of
.50 per Flow-Through Unit and units (each, a "Unit") issued at a purchase price of
.50 per Unit, for aggregate gross proceeds of up to $2,000,000.
Each Flow-Through Unit will consist of one common share in the capital of the Company to be issued as a flow-through share under the provisions of the Income Tax Act (Canada) and one-half of one common share purchase warrant (each whole warrant, a "Warrant"). Each Unit will consist of one common share in the capital of the Company and one Warrant. Each Warrant entitles the holder thereof to purchase one non-flow-through common share of the Company at an exercise price of
.75 per share at any time on or before 18 months after the Closing Date.
Proceeds from the Private Placement will be used to finance exploration of the Company's mineral projects and for general working capital purposes. The flow-through proceeds will be used to fund Canadian exploration expenses prior to December 31, 2012 at the latest. The Company intends to renounce the qualifying expenditures to subscribers for the year ended December 31, 2012.
In consideration for their services, the agent will be paid a commission equal to 8% of the gross proceeds from the Private Placement, payable in cash. In addition, the agents will receive agent's compensation options to acquire that number of Units equal to 10% of the number of Units and Flow-Through Units sold pursuant to the Private Placement. The agent's compensation options will be exercisable for a period of 18 months form the Closing Date at a price of
.75 per Unit. The Company has agreed to pay certain expenses reasonably incurred by Union in connection with the Private Placement.
The offered securities will not be registered under the United States Securities Act of 1933, as amended (the "US Securities Act") and may not be offered or sold within the United States or to or for the account or benefit of US persons, except in certain transactions exempt from the registration requirements of the US Securities Act. This press release does not constitute an offer to sell, or the solicitation of any offer to buy, securities of the Company in the United States.
ON BEHALF OF THE BOARD
ARGENTIUM RESOURCES INC.
"John Carter" (signed)
John Carter, President