Argo Gold Announces closing of Private Placement, Exploration Plans and Corporate Update
Toronto, CANADA, January 10, 2019 – Argo Gold Inc. (“Argo Gold” or the “Company”) (CSE: ARQ) is pleased to announce that it has closed its previously announced private placement through the issuance of 1,725,555 units (“Units”) at the price of $0.18 per Unit and 3,986,500 flow through shares (“Flow Through Shares”) at the price of $0.22 per Flow Through Share.
To date the Company has raised an aggregate of $1,187,629.90 through the issuance of Units and Flow-Through Shares pursuant to the offering. In connection with the offering the Company has paid finder’s fees of $81,274.10 cash and issued an aggregate of 388,955 warrants (“Broker Warrants”). Each Broker Warrant entitles the holder thereof to purchase one common share (each, a “Common Share”) at an exercise price of $0.25 per Common Share for a period of twelve (12) months from the date of issuance. All securities issued in connection with the offering are subject to a four month statutory hold period.
The gross proceeds from the Flow-Through Share offering will be used for Canadian Exploration Expenses, and will qualify as “flow-through mining expenditures”, as defined in the Income Tax Act (Canada). The Company has scheduled a meeting of its technical committee for January 14, 2019. The purpose of this meeting is to finalize the exploration plans and the drill program previously outlined in November 2018, focusing on the flagship Woco Gold Project located west of Uchi Lake in the Red Lake Mining District of Ontario. The Woco Gold Project is just 75 kilometres east of the Great Bear Resources Dixie Project, with both projects having high-grade mineralization in the Confederation volcanics proximal to a major regional structure.
The Company is continuing its search for a Chief Executive Officer and expects to find a suitable replacement in the near future.