RE:RE:RE:RE:RE:RE:NewsLifexprt wrote:
I believe the reasoning behind it is to use proceeds from flow through shares initially to offset development/exploration expenses. Existing resources are held for later construction stages. Definitely not the right time to be financing but more resources ensures proper exploration and reduces financial risk.
No one is disputing the purpose of CDE shares, how they are to be used, and the benefits to an explorer (a status from which AR has long since graduated).
At issue here is the timing of this unnecessary two-bit garage sale to The Syndicate, when even as recently as a few weeks ago, shares were issued at an exponentially higher (and representing better fair value) price to the same Syndicate.
This latest 8,000,000 + tranche seems nothing more than a mollifying soother to lend a hand to assist the wholesalers at The Syndicate in reducing their ACB if they have come griping and whining about having paid $3.83 for shares now trading at (ex-tax credit) $2.35. 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.