Argo Gold Announces First Closing of Units and Flow-Through Shares
Toronto, Ontario--(Newsfile Corp. - December 12, 2018) - Argo Gold Inc. (CSE: ARQ) ("Argo Gold" or the "Company") is pleased to announce that it has completed the first tranche ("First Tranche") of its previously announced non-brokered private placement offering through the issuance of 1,600,000 units ("Units") at a price of $0.18 per Unit and 1,600,000 flow through shares ("Flow Through Shares") at a price of $0.22 per Flow Through Share, for aggregate proceeds of $640,000. Each Unit consists of one common share (a "Common Share") of the Company and one-half of one common share purchase warrant (each whole warrant, a "Warrant") with each Warrant entitling the holder thereof to purchase one Common Share at an exercise price of $0.25 for a period of twelve (12) months from the date of closing of the First Tranche.
In connection with the issuance of the Units subscribed for in the First Tranche, the Company paid a finder's fee equal to $41,869 and issued an aggregate of 208,950 broker warrants (the "Broker Warrants"), each Broker Warrant exercisable into one Common Share at a price of $0.25 per share for twelve (12) months from the date of closing of the First Tranche. The securities issued in connection with the First Tranche are subject to a hold period of four months and a day from the date of closing of the First Tranche. The net proceeds from the Unit offering will be used for general corporate purposes. 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).