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Argonaut Gold Announces Closing of $26.5 Million Offering of Flow-Through Shares

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Argonaut Gold Inc. (TSX: AR) is pleased to announce that it has closed its previously-announced offering of “flow-through shares” with respect to “Canadian development expenses” within the meaning of the Income Tax Act (Canada) and the regulations thereunder in force as of the date hereof at a price of $2.82 per CDE Flow-Through Share for gross proceeds of $26,450,232.30 . The Offering was completed in two concurrent tranches, whereby: (i) an aggregate of 6,276,515 CDE Flow-Through Shares were issued and qualified for distribution to the public under the Prospectus (as defined below), and (ii) an aggregate of 3,103,000 CDE Flow-Through Shares were issued on a private placement basis.


The Offering was completed pursuant to an underwriting agreement dated January 29, 2021 (as amended on February 17, 2021) entered into among the Company and a syndicate of underwriters led by Cormark Securities Inc., and including Canaccord Genuity Corp., Echelon Wealth Partners Inc., Laurentian Bank Securities Inc., Paradigm Capital Inc., BMO Nesbitt Burns Inc., Scotia Capital Inc., and Stifel Nicolaus Canada Inc.


The proceeds from the sale of the CDE Flow-Through Shares will be used on development expenses on the Magino project as permitted under the Tax Act to qualify as CDE. The Company will renounce all the CDE development expenses in favour of the subscribers of the CDE Flow-Through Shares effective on or before December 31, 2021.


The Company filed a short form prospectus in each of the provinces of Canada, except for Québec, pursuant to National Instrument 44-101 – Short Form Prospectus Distributions to qualify for distribution the CDE Flow-Through Shares offered pursuant to the public tranche of the Offering. Copies of the final short form prospectus and documents incorporated by reference therein are available electronically on SEDAR ( under Argonaut’s issuer profile. The CDE Flow-Through Shares issued on a private placement basis are subject to a four month hold period in Canada.


The securities offered have not been, and will not be, registered under the U.S. Securities Act or any U.S. state securities laws, and may not be offered or sold in the United States or to, or for the account or benefit of, United States persons absent registration or any applicable exemption from the registration requirements of the U.S. Securities Act and applicable U.S. state securities laws. This press release shall not constitute an offer to sell or the solicitation of an offer to buy securities in the United States, nor will there be any sale of these securities in any jurisdiction in which such offer, solicitation or sale would be unlawful.


About Argonaut Gold


Argonaut Gold is a Canadian gold company engaged in exploration, mine development and production. Its primary assets are the El Castillo mine and San Agustin mine, which together form the El Castillo Complex in Durango, Mexico, the La Colorada mine in Sonora, Mexico and the Florida Canyon mine in Nevada, USA. The Company also holds the construction stage Magino project, the advanced exploration stage Cerro del Gallo project and several other exploration stage projects, all of which are located in North America.


Posted February 17, 2021

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