TORONTO and VANCOUVER, BC, June 22,
2020 /CNW/ - Argonaut Gold Inc. ("Argonaut" or
"Argonaut Gold") (TSX: AR) and Alio Gold Inc. ("Alio"
or "Alio Gold") (TSX, NYSE-A:
ALO) are pleased to announce the receipt of the clearance decision
from the Comisión Federal de Competencia Económica ("COFECE") with
respect to the pending merger between Argonaut Gold and
Alio Gold. COFECE approval was
the final government agency approval required before completing the
merger, which is anticipated to occur between June 29, 2020 and July 3,
2020.
About Argonaut
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 and the La Colorada
mine in Sonora, Mexico.
Advanced exploration projects include the Cerro del Gallo project
in Guanajuato, Mexico and the
Magino project in Ontario,
Canada. The Company continues to hold the San Antonio advanced exploration project in
Baja California Sur, Mexico and
several exploration stage projects, all of which are located in
North America.
About Alio
Alio Gold is a gold mining
company. We are focused on the safe and profitable production of
gold from our cornerstone asset, the 100% owned Florida Canyon Mine
in Nevada, USA. The Company also
owns the development stage Ana Paula Project in Guerrero, Mexico.
For further information, please contact:
Dan Symons
VP,
Investor Relations
Argonaut Gold Inc.
Tel: 416-915-3107
dan.symons@argonautgold.com
Paul Jones
SVP, Corporate Development
Alio Gold Inc.
Tel: 604-638-8949
paul.jones@aliogold.com
Neither the TSX nor its Regulation Services Provider (as that
term is defined in the policies of the TSX) nor the NYSE American
accepts responsibility for the adequacy or accuracy of this news
release.
Cautionary Note Regarding Forward-looking
Statements
This press release contains certain
"forward-looking statements" and "forward-looking information"
under applicable Canadian securities laws concerning the proposed
transaction and the business, operations and financial performance
and condition of Argonaut Gold and Alio
Gold. Forward-looking statements and forward-looking
information include, but are not limited to, statements with
respect to estimated production and mine life of the various
mineral projects of Argonaut and Alio; expectations with respect to
future cash flows from operations, net debt and financial results;
the successful completion of proposed acquisitions; metal or
mineral recoveries; synergies and financial impact of completed
acquisitions; the benefits of the development potential of the
properties of Argonaut and Alio; the future price of gold, copper,
and silver; the estimation of mineral reserves and resources; the
realization of mineral reserve estimates; the timing and amount of
estimated future production; costs of production; success of
exploration activities; market volatility and disruptions in many
aspects of Argonaut's and Alio's business due to a pandemic virus
outbreak, such as COVID-19, resulting from government policies
restricting mobility assembly, or contact with, employees and
suppliers across the global supply chain; and currency exchange
rate fluctuations. Except for statements of historical fact
relating to Argonaut or Alio, certain information contained herein
constitutes forward-looking statements. Forward-looking statements
are frequently characterized by words such as "plan," "expect,"
"project," "intend," "believe," "anticipate", "estimate" and other
similar words, or statements that certain events or conditions
"may" or "will" occur. Forward-looking statements are based on the
opinions and estimates of the management of Argonaut or Alio at the
date the statements are made, and are based on a number of
assumptions and subject to a variety of risks and uncertainties and
other factors that could cause actual events or results to differ
materially from those projected in the forward-looking statements.
Many of these assumptions are based on factors and events that are
not within the control of Argonaut or Alio and there is no
assurance they will prove to be correct.
Factors that could cause actual results to vary materially from
results anticipated by such forward-looking statements include
risks of the mining industry, the spread of COVID-19 and the impact
of government policies to ameliorate COVID-19, failure of plant,
equipment or processes to operate as anticipated, changes in market
conditions, variations in ore grade or recovery rates, risks
relating to international operations, fluctuating metal prices and
currency exchange rates, changes in project parameters, the
possibility of project cost overruns or unanticipated costs and
expenses and labour disputes.
These factors are discussed in greater detail in Argonaut's and
Alio's (i) most recent Annual Information Forms, and (ii) most
recent Management Discussion and Analysis, which are each filed on
Argonaut's and Alio's respective SEDAR profiles and provide
additional general assumptions in connection with these statements.
Argonaut and Alio caution that the foregoing list of important
factors is not exhaustive. Investors and others who base themselves
on forward-looking statements should carefully consider the above
factors as well as the uncertainties they represent and the risk
they entail. Argonaut and Alio believe that the expectations
reflected in those forward-looking statements are reasonable, but
no assurance can be given that these expectations will prove to be
correct and such forward-looking statements included in this
presentation should not be unduly relied upon. These statements
speak only as of the date of this presentation.
Although Argonaut and Alio have attempted to identify important
factors that could cause actual actions, events or results to
differ materially from those described in forward-looking
statements, there may be other factors that cause actions, events
or results not to be anticipated, estimated or intended. There can
be no assurance that forward-looking statements will prove to be
accurate, as actual results and future events could differ
materially from those anticipated in such statements.
Neither Argonaut nor Alio undertakes any obligation to update
forward-looking statements if circumstances or management's
estimates or opinions should change except as required by
applicable securities laws. The reader is cautioned not to place
undue reliance on forward-looking statements. Statements concerning
mineral reserve and resource estimates may also be deemed to
constitute forward-looking statements to the extent they involve
estimates of the mineralization that will be encountered if the
property is developed. Comparative market information is as of a
date prior to the date of this document.
SOURCE Argonaut Gold Inc.
