/NOT FOR DISTRIBUTION TO U.S. NEWS WIRE
SERVICES OR DISSEMINATION IN THE UNITED
STATES/
TORONTO, Oct. 30, 2020 /CNW/ - Argonaut Gold Inc. (TSX:
AR) ("Argonaut Gold" or the "Company") is pleased to
announce that it has closed its previously announced "bought deal"
offering of US$57.5 million of 4.625%
senior unsecured convertible debentures (the "Debentures")
of the Company (including the full exercise of the Underwriters'
over-allotment option) at a price of US$1,000 per Debenture (the "Offering").
The Debentures were offered and sold through BMO Capital Markets
and Scotiabank (together, the "Underwriters") and are now
listed on the Toronto Stock Exchange under the trading symbol
'AR.DB.U'.
The Debentures will mature on November
30, 2025 (the "Maturity Date") and will bear interest
at an annual rate of 4.625% payable semi-annually in arrears on
May 31 and November 30 of each year, commencing May 31, 2021. At the holder's option, the
Debentures may be converted to common shares of the Company
("Common Shares") at any time prior to the close of business
on the earlier of the last business day immediately preceding the
Maturity Date and the date fixed for redemption at a conversion
rate of 350.1155 per US$1,000
principal amount of Debenture (equal to a conversion price of
approximately US$2.86 per Common
Share), subject to adjustment in certain circumstances in
accordance with the debenture indenture entered into between
Computershare Trust Company of Canada, as debenture trustee, and the Company
(the "Debenture Indenture").
The Debentures issued under the Offering were offered by way of
a short form prospectus dated October 27,
2020 in each of the provinces of Canada, except Québec. Copies of the final
short form prospectus, the Debenture Indenture and documents
incorporated by reference therein are available electronically
under Argonaut Gold's issuer profile on SEDAR at www.sedar.com.
The net proceeds of the Offering will be used to for the
advancement of the Company's Magino Project and for general
corporate purposes.
The securities offered have not been registered under the U.S.
Securities Act of 1933, as amended, and may not be offered or sold
in the United States absent
registration or an applicable exemption from the registration
requirements. This press release shall not constitute an offer to
sell or the solicitation of an offer to buy nor shall there be any
sale of the securities in any jurisdiction in which such offer,
solicitation or sale would be unlawful.
About Argonaut Gold
Argonaut Gold is a Canadian gold
company engaged in exploration, mine development and
production. Its primary assets are the El Castillo mine and San Agustin mine, which together form the El
Castillo Complex in Durango,
Mexico, the La Colorada
mine in Sonora, Mexico and the
Florida Canyon mine in Nevada,
USA. Advanced exploration projects include the Magino project
in Ontario, Canada and the Cerro
del Gallo project in Guanajuato,
Mexico. The Company holds several other exploration stage
projects, all of which are located in North America.
Cautionary Note Regarding Forward-looking
Statements
This press release contains certain
"forward-looking statements" and "forward-looking information"
under applicable Canadian securities laws concerning, among other
things, the Offering and the use of proceeds of the Offering. These
"forward-looking statements" and "forward-looking information" are
based on the opinions and estimates of management at the date the
statements are made, and are based on a number of assumptions and
subject to a variety of risks and uncertainties and other factors
that could cause actual events or results to differ materially from
those projected in the forward-looking statements. Many of these
assumptions are based on factors and events that are not within the
control of Argonaut Gold and there is no assurance they will prove
to be correct. Although Argonaut Gold has attempted to identify
important factors that could cause actual actions, events or
results to differ materially from those described in
forward-looking statements, there may be other factors that cause
actions, events or results not to be anticipated, estimated or
intended. Argonaut Gold believes that the expectations reflected in
those forward-looking statements are reasonable, but no assurance
can be given that these expectations will prove to be correct and
such forward-looking statements included in this press release
should not be unduly relied upon. These statements speak only as of
the date of this press release. The Company undertakes no
obligation to publicly update or revise any forward-looking
statements, whether as a result of new information, future events
or otherwise, other than as required by applicable law.
For more information, contact:
Dan Symons
Vice President, Corporate Development & Investor Relations
Phone: 416-915-3107
Email: dan.symons@argonautgold.com
Source: Argonaut Gold Inc.
SOURCE Argonaut Gold Inc.