Argonaut Gold completes $40M bought deal

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By CPE News

Toronto (pcJ News Briefs) – Argonaut Gold Inc. (TSX: AR) has completed previously announced bought deal public offering of 16,700,000 common shares at $2.40 per share for gross proceeds of $40,080,000.

The offering was made and sold through a syndicate of underwriters led by BMO Capital Markets.

Argonaut Gold 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 the offering price to cover over-allotments, if any.

Net proceeds of the Offering will be used to fund the purchase of a mining concession in San Juan del Río Durango, consisting of 420 hectares covering known projections of the El Castillo mineralization and for general corporate purposes.

Argonaut Gold is a Canadian gold company engaged in exploration, mine development and production activities. Its primary assets are the production stage El Castillo mine and the construction stage San Agustin project in Durango, Mexico and the production stage La Colorada mine in Sonora, Mexico. Advanced exploration stage projects include the San Antonio project in Baja California Sur, Mexico, and the Magino project in Ontario, Canada. ThecCompany also has several exploration stage projects, all of which are located in North America.

photo credit: Argonaut Gold