Argonaut Gold

Argonaut Gold closes $40.08-million financing

2017-03-15 10:21 ET - News Release

Mr. Dan Symons reports
ARGONAUT GOLD ANNOUNCES CLOSING OF C$40 MILLION BOUGHT DEAL FINANCING
Argonaut Gold Inc. has closed its previously announced bought deal public offering of 16.7 million common shares of the company at a price of $2.40 per common share for aggregate gross proceeds of $40.08-million. The common shares were offered and sold through a syndicate of underwriters led by BMO Capital Markets.

Under the terms of the offering, the company has also granted the underwriters an option, exercisable in whole or in part for a period of 30 days following the closing date of the offering, to purchase up to an additional 2,505,000 common shares at a price of $2.40 per common share for market stabilization purposes and to cover overallotments, if any.

The common shares issued under the offering were offered by way of a short form prospectus dated March 7, 2017, in each of the provinces and territories of Canada, except Quebec. Copies of the final short form prospectus and documents incorporated by reference therein are available electronically under Argonaut's issuer profile on SEDAR.

The net proceeds of the offering will be used to finance the purchase of a mining concession in San Juan del Rio Durango, consisting of 420 hectares covering known projections of the El Castillo mineralization, and for general corporate purposes.
About Argonaut Gold Inc.