TORONTO, March 8,
2022 /CNW/ - Argonaut Gold Inc. (TSX: AR) (the
"Company", "Argonaut Gold" or "Argonaut") announces that it has
filed an early warning report in respect of its holdings in Magna
Gold Corp. ("Magna"). On March 7,
2022, Argonaut sold an aggregate of 9,740,000 common shares
of Magna ("Magna Shares"), at a price of $0.70 per Magna
Share for aggregate gross proceeds of $6,818,000 (the "Transaction"). In connection
with the Transaction, Argonaut paid a trading commission of
$0.015 per Magna Share, for aggregate net proceeds of
$6,671,900. All dollar amounts are
expressed in Canadian dollars.
Immediately prior to giving effect to the Transaction, the
Company had beneficial ownership of, or control and direction over,
9,740,000 Magna Shares, representing approximately 10.8% of the
issued and outstanding Magna Shares (being 90,059,874 Magna
Shares). Immediately after giving effect to the Transaction, the
Company had beneficial ownership of, or control and direction over,
nil Magna Shares, representing nil percent of the issued and
outstanding Magna Shares.
Argonaut disposed of the Magna Shares in order to monetize its
investment in Magna. Argonaut reserves the right to purchase
additional securities of Magna as future circumstances may
dictate.
This news release is being issued in accordance with National
Instrument 62-103 – The Early Warning System and Related
Take-Over Bid and Insider Reporting Issues in connection with
the filing of an early warning report dated March 8, 2022. The early warning report
respecting the Transaction has been filed on SEDAR (www.sedar.com)
under Magna's issuer profile. To obtain a copy of the early warning
report filed by the Company, please contact Dan Symons at 416-915-3107 or refer to SEDAR
(www.sedar.com) under Magna's issuer profile.
SOURCE Argonaut Gold Inc.
