Argo Gold Inc (C:ARQ)
Shares Issued 22,988,128
Last Close 5/26/2017 $0.25
Friday May 26 2017 – News Release
Ms. Judy Baker reports
ARGO GOLD CLOSES FINAL TRANCHE OF PRIVATE PLACEMENT OF UNITS AND FLOW-THROUGH SHARES
With the cross of 1.8 mil of Ms Bakers shares to an institutional shareholder we have raised 830000 and have oversubscribed.
Argo Gold Inc. has closed the final tranche of its previously announced non-brokered private placement through the issuance of 950,000 units at a price of 20 cents per unit for gross proceeds of $190,000 and 280,000 flow-through shares at a price of 25 cents per flow-through share for aggregate gross proceeds of $70,000. Each unit comprises one common share of the company and one-half of one common share purchase warrant, with each warrant entitling the holder thereof to purchase one common share at an exercise price of 30 cents for a period of 24 months from the date of closing.
To date, the company has raised an aggregate of $650,000 through the issuance of units and flow-through shares pursuant to the offering. In connection with the offering, the company has paid finders’ fees of $19,600 cash and issued an aggregate of 89,250 warrants. Each broker warrant entitles the holder thereof to purchase one common share at an exercise price of 30 cents per common share for a period of 24 months from the date of issuance. All securities issued in connection with the offering are subject to a four-month statutory hold period.
The net proceeds raised from the unit offering will be used for general corporate purposes. The gross proceeds raised 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 final tranche of the offering constituted a related party transaction within the meaning of Multilateral Instrument 61-101 as insiders of the company subscribed for an aggregate of 400,000 units. The company is relying on the exemptions from the valuation and minority shareholder approval requirements of MI 61-101 contained in sections 5.5(a) and 5.7(1)(a) of MI 61-101, as the fair market value of the participation in the offering by insiders does not exceed 25 per cent of the market capitalization of the company, as determined in accordance with MI 61-101. The company did not file a material change report in respect of the related party transaction at least 21 days before the closing of the offering, which the company deems reasonable in the circumstances so as to be able to avail itself of the proceeds of the offering in an expeditious manner.
The company also wishes to correct an error in the press release of May 11, 2017, which announced that the company paid a finder’s fee equal to $2,450 and issued an aggregate of 12,250 broker warrants in connection with the second tranche of the offering when in fact the company paid finders’ fees totalling $5,950 and issued an aggregate of 29,750 broker warrants pursuant to the second tranche.