CALGARY, ALBERTA--(Marketwire - Aug. 8, 2012) - Argonaut Exploration Inc. ("the Company") (TSX VENTURE:AGA), a company engaged in the exploration and development of precious and base metals near Terrace British Columbia, is pleased to announce that it has closed the first tranche of its previously announced non-brokered private placement of up to 10 million Units priced at $0.05 per Unit. Pursuant to this closing, the Company will issue an aggregate of 4,637,500 Units for gross proceeds of $231,875. Each Unit consists of one common share ("Common Share") and one flow-through common share purchase warrant ("Warrant") of the Corporation. Each Warrant will entitle the holder to acquire one Common Share to be issued on a "flow-through" tax basis at a price of $0.10 until December 31, 2012. Additional tranches under this private placement will close shortly.
The securities issued pursuant to the Offering are subject to a four (4) month hold period. Completion of the Offering is subject to the final approval of the TSX Venture Exchange.
Proceeds of the financing will be used to advance the business of the Company in particular the exploration and development of the Columario Property and historic mine.
Finders acting in connection with the first tranche of this private placement received a finder's fee in the total amount of $7,600.
In additional news; the Company has filed the Columario Property technical report on the 2011 work program with British Columbia Mineral Titles on August 1, 2012. The newly released report can now be viewed on SEDAR and the Company's website at www.argonautexploration.com. The value of the technical work has been applied to maintain in good standing the Company's adjoining Terrace and Columario mineral tenures until the years 2020 to 2022.
Argonaut acquired, on July 29, 2012, mineral tenure 980323 which contains the Silver Bow mineral zone. The Silver Bow mineral tenure adjoins the Columario property thus adding several new mineralized vein systems to the company's Terrace holdings. Documented historic surface production from the Silver Bow zone are detailed in a report stating that 14.8 tons of ore was processed from two shipped lots:
Historic report G.S.C. Memoir 329, describes the Silver Bow showing as a number of quartz veins containing silver, lead and zinc located in moderately steep dipping fissures adjacent to feldspar porphyry dykes that intrude volcanic and granitic country rock. A vein located at an elevation of 2000 feet (610 meters) returned historic assays to: gold, 0.08 oz./ton; silver, 6.3 oz./ton; lead, 7.6 % and zinc, 2.4 %.
The Silver Bow zone is located 1.3 km east of a major highway and power lines.
About Argonaut Exploration Inc.
Argonaut is a junior mineral exploration company focused on the acquisition, exploration and development of mineral properties. For more information on the Corporation visit its website at www.argonautexploration.com.
This news release may contain certain forward-looking information. All statements included herein, other than statements of historical fact, are forward-looking information and such information involves various risks and uncertainties. There can be no assurance that such information will prove to be accurate, and actual results and future events could differ materially from those anticipated in such information. A description of assumptions used to develop such forward-looking information and a description of risk factors that may cause actual results to differ materially from forward-looking information can be found in the Company's disclosure documents on the SEDAR website at www.sedar.com. The Company does not undertake to update any forward-looking information except in accordance with applicable securities laws.
Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.