Argentex Mining Corporation (TSXV:ATX,OTCQB:AGXMF) announced that it has closed strategic financing with Austral Gold Limited (ASX:AGD), for just under CDN$5.0 million.

As quoted in the press release:

As a result of this placement Austral Gold is Argentex’s second largest shareholder with 11.7% of its outstanding shares. International Finance Corporation (“IFC”) remains the largest shareholder owning approximately 13.4% of its outstanding shares. Upon full conversion of the convertible debenture, which is scheduled to convert in monthly installments over the next nine months, Austral Gold would beneficially own 19.9% of the Argentex common shares outstanding, and the IFC share position in Argentex would be approximately 12.1%.

Argentex’s President and CEO, Michael Brown, said:

We are extremely pleased with this strategic investment by Austral Gold, especially in light of the difficult financial market conditions for resource companies. We have been successful in raising the capital needed to continue development of our projects located in Patagonia and initiating a strategic relationship with an experienced partner with project development and operations experience.

To view the whole press release, click here.