Argonaut Exploration Inc. Announces Signing of Financing Engagement with IBK Capital Corp.
01 March 2013 - 2:40AM
Marketwired Canada
Argonaut Exploration Inc. (the "Company" or "Argonaut") (TSX VENTURE:AGA)
announces that it has engaged IBK Capital Corp. ("IBK Capital") to complete, on
terms and conditions acceptable to the Company, a private placement (the
"Financing") of up to $550,000 on a best efforts basis following the due
diligence requirements of IBK Capital. The Financing will consist of up to
11,000,000 units of the Company ("Units") priced at $0.05 per Unit. Each Unit
will consist of one common share in the capital of the Company ("Common Share")
and one-half of one Common Share purchase warrant ("Warrant"). Each whole
Warrant shall be exercisable into one Common Share at a price of $0.10 per
Common Share for a period of eighteen months from the date of issue.
The Company has agreed to pay IBK Capital the following fees:
-- On the closing date thereon a commission equal to 9% of the total amount
of the Financing (the "Commission").
-- A non-refundable work fee of $25,000 (the "Work Fee"). The Work Fee will
be deducted from the Commission upon closing of the Financing. The Work
Fee is paid to IBK Capital to partially defray its upfront internal
costs of providing the services contemplated by this agreement and is
not success based and is not refundable.
-- Argonaut agrees to issue to IBK Capital non-transferable common share
purchase warrants of the Company ("Broker Warrants"). The number of
Broker Warrants to be issued to IBK Capital will be equal to 10% of the
total number of Units issued pursuant to the Financing to a maximum of
1,100,000 Broker Warrants. Each Broker Warrant shall entitle IBK Capital
to acquire one Common Share at a price of $0.05 per Broker Warrant for a
period of eighteen months from the date of issue. The Broker Warrants
shall expire on the date that is eighteen months from the date of
issuance.
-- The appointment of IBK Capital pursuant to this agreement is effective
until June 17th, 2013. This agreement may, however, be terminated or
extended by the Company or by IBK Capital upon notice in writing or
otherwise to the other party.
Proceeds of the Offering will be used for the advancement of the Corporation's
business, 2013 exploration and a focus on bulk sampling development at selected
Terrace Property sites following the required British Columbia permitting
requirements.
About Argonaut Exploration Inc.
Argonaut is a junior mineral exploration company focused on the acquisition,
exploration and development of gold, silver and copper bearing mineral
properties. For more information on the Corporation visit its website at
www.argonautexploration.com.
This news release may contain certain forward-looking information. All
statements included herein, other than statements of historical fact, are
forward-looking information and such information involves various risks and
uncertainties. There can be no assurance that such information will prove to be
accurate, and actual results and future events could differ materially from
those anticipated in such information. A description of assumptions used to
develop such forward-looking information and a description of risk factors that
may cause actual results to differ materially from forward-looking information
can be found in the Company's disclosure documents on the SEDAR website at
www.sedar.com. The Company does not undertake to update any forward-looking
information except in accordance with applicable securities laws.
FOR FURTHER INFORMATION PLEASE CONTACT:
Argonaut Exploration Inc.
Ray Cook
President and C.E.O.
(403) 969-7903
ray@argoexp.com
www.argonautexploration.com
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