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Argonaut Gold (TSX:AR) provided an update on activities at its Magino property, and announced it had closed a private placement for proceeds of C$4.5 million. As quoted in the press release: In connection with the planned activities at Magino, the Company is pleased to announce that it has issued 1,280,000 flow-through common shares (“Flow-Through Shares”) …
Argonaut Gold (TSX:AR) provided an update on activities at its Magino property, and announced it had closed a private placement for proceeds of C$4.5 million.
As quoted in the press release:
In connection with the planned activities at Magino, the Company is pleased to announce that it has issued 1,280,000 flow-through common shares (“Flow-Through Shares”) on a private placement basis at a price of C$3.55 per Flow-Through Share (the “Offering”), representing a 24.5% premium from the date of pricing on May 9, 2016, for aggregate gross proceeds of C$4,544,000.
Closing of the private placement occurred on May 25, 2016. The Flow-Through Shares were sold through a syndicate of Agents led by GMP Securities L.P. and including Desjardins Securities Inc.
The gross proceeds from the sale of the Flow-Through Shares will be used to fund Canadian exploration expenses (within the meaning of the Income Tax Act (Canada)), that will qualify as “flow-through mining expenditures”, as defined in subsection 127(9) of the Income Tax Act(Canada), and “eligible Ontario exploration expenditures”, as defined in the Taxation Act, 2007 (Ontario) at Argonaut’s 100% owned Magino property in Ontario.
The Flow-Through Shares issued in connection with the Offering are subject to a hold period of four months and one day in accordance with applicable Canadian securities laws.
Argonaut President and CEO, Pete Dougherty, said:
We view drilling out the first phase of the projected pit a substantial de-risking of the Magino project. At the same time, we will move forward with permitting at Magino to further de-risk the project.