Argonaut Gold Announces Terms to Fully Finance the Magino Construction Project

Argonaut Gold Inc. has entered into an agency agreement in connection with the marketed offering of 434,000,000 common shares of the Company, and Common Shares offered pursuant to the Offering being the “Offered Shares” at a price of C$0.45 per Offered Share (for gross proceeds of approximately C$195 million) with a syndicate of agents: BMO Capital Markets, Scotiabank and Cormark Securities and including Canaccord Genuity Corp., RBC Capital Markets, Desjardins Capital Markets, Echelon Wealth Partners, Laurentian Bank Securities, Paradigm Capital, and Stifel GMP.

Together with the previously announced binding commitment letter from a syndicate of lenders for the financing of a six year, US$200 million term loan credit facility and a three-year revolving credit facility of US$50 million, for a total debt Facilities limit of US$250 million, the Company believes it is fully financed to complete the construction of its 100% owned Magino Project in Ontario, Canada. The project remains on schedule for first gold pour by the end of March 2023.

The net proceeds of the Offering will be used for the development of the Magino Project and for general corporate purposes.

The closing of the Offering is expected to occur on or about July 5, 2022, and is subject to market and other customary conditions and Toronto Stock Exchange (“TSX”) approval.


This Media Release