TORONTO, July 1, 2020 /CNW/ - Argonaut Gold Inc.
("Argonaut" or "Argonaut Gold") (TSX: AR) and Alio
Gold Inc. ("Alio" or "Alio
Gold") (TSX, NYSE-A: ALO) have completed the business
combination to create a North American, diversified precious metals
producing company with a strong portfolio of growth
assets.
Pete Dougherty, President and CEO
of Argonaut Gold, stated: "By combining Argonaut with Alio, we have
created a diversified, intermediate gold producer with four
producing mines, an enviable growth asset pipeline and increased
capital markets scale. On behalf of the entire Argonaut Gold team I
would like to personally welcome Ms. Paula
Rogers and Mr. Stephen Lang
to the Board of Directors."
Argonaut common shares will continue trading on the Toronto
Stock Exchange with no changes.
Alio shares are expected to cease trading on the NYSE American
on July 1, 2020 and be de-listed from
the Toronto Stock Exchange after close of business on July 3, 2020. Under the terms of the
Arrangement Agreement, all of the Alio issued and outstanding
common shares will be exchanged on the basis of 0.67 of an Argonaut
common share per each Alio common share (the "Exchange
Ratio"). The Exchange Ratio was agreed upon based on the
volume-weighted average prices of Argonaut and Alio common shares
over the 20 trading days ended on March
27, 2020.
Alio shares deposited in an online trading account will update
automatically to reflect the conversion to Argonaut shares,
generally within two weeks of closing. Alio shareholders who still
hold physical share certificates or DRS Statements must submit a
Letter of Transmittal to Argonaut's transfer agent, Computershare
Investor Services Inc., to receive new Argonaut share certificates.
Additional information regarding the process is available on
Argonaut's website at www.argonautgold.com.
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. Advanced exploration projects include the Cerro del
Gallo project in Guanajuato,
Mexico, the Magino project in Ontario, Canada, and the Ana Paula project in
Guerrero, Mexico. 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.
Argonaut Gold Inc.
Dan Symons
Vice President, Investor Relations
Phone: 416-915-3107
Email: dan.symons@argonautgold.com
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 Inc. ("Argonaut" or "Argonaut Gold").
Forward-looking statements and forward-looking information
include, but are not limited to, statements with respect to the
trading of the Argonaut shares on the Toronto Stock Exchange, the
de-listing of the Alio shares and updates to Alio shares deposited
in online trading accounts; statements with respect to estimated
production and mine life of the various mineral projects of
Argonaut; synergies and financial impact of completed acquisitions;
the benefits of the development potential of the properties of
Argonaut; 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; and currency exchange rate fluctuations. Except
for statements of historical fact relating to Argonaut, 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 management 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 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
changes in market conditions, the scope, duration and impact of the
COVID-19 pandemic, the scope, duration and impact of regulatory
responses to the pandemic on the employees, business and operations
of Argonaut and the broader market, variations in ore grade or
recovery rates, risks relating to internatioSource: Argonaut Gold
Inc.Source: Argonaut Gold Inc.Source: Argonaut Gold Inc.Source:
Argonaut Gold Inc.Source: Argonaut Gold Inc.nal operations,
fluctuating metal prices and currency exchange rates, changes in
project parameters, the possibility of project cost overruns or
unanticipated costs and expenses, labour disputes and other risks
of the mining industry, failure of plant, equipment or processes to
operate as anticipated. Although Argonaut has 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. Argonaut undertakes no 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.
SOURCE Argonaut Gold Inc.
