CALGARY, ALBERTA--(Marketwire - Sept. 11, 2012) - Argonaut Exploration Inc. (the "Company") (News - Market indicators), 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 its second tranche and finished the previously announced non-brokered private placement. The placement returned gross proceeds of $291,875 and the Company will issue an aggregate of 5,837,500 Units. 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.
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 this private placement received a finder's fee in the total amount of $12,000.
Drill Mobilization
Argonaut has mobilized Titan Diamond Drilling to the Columario property to commence a 700 to 1000 metre exploration drill program targeting the gold bearing Victor vein on the southern part of the property. The program will be supervised by Dr. Mathias Westphal, P.Geol. of Smithers, B.C. Dr. Westphal is an internationally experienced geoscientist who has consulted extensively on both precious metal vein and porphyry system projects throughout north central British Columbia.
Victor Vein
The Victor and associated neighbouring veins were historically described as the potential extension of the Columario mine vein system. In 1935, a newspaper article (The Omineca Herald, no.43, 1935) described that the management of the Columario mine were planning a separate tram line to the mine from the Victor vein area if gold values and tonnage justified development.
The Victor vein is located 2.1 kilometres south of the Columario mine workings on the Columario property. The vein is exposed intermittently over a strike length of 150 metres with a width ranging from 0.3 to 2 metres, averaging 0.5 metres. The host rock is lower Jurassic Hazelton volcanic andesite, the same as that exposed with diorite at the Columario mine. The vein appears to be faulted at both ends requiring exploration to determine its projected offsets and gold content.
In 2011, nine channel samples were collected by the Company along the full exposure of the Victor vein. The average assay results of the 9 samples returned 15.0 g/t (0.44 oz/tonne) gold and 6.0 g/t (0.18 oz/tonne) silver over an average width of 0.48 metres. The best result of the sample program was 72.4 g/t (2.1 oz/tonne) gold and 10.2 g/t (0.3 oz/tonne) silver over 0.3 metres.
Ray Cook, President of Argonaut, states: "The Victor vein drill program is the first step in potentially creating a 43-101 compliant gold resource on the Columario property. Argonaut continues to work at obtaining a significant precious metal asset base in the area and the necessary larger financing needed to drill test our assets with a priority on the underground workings of the gold mine to the north."
About Argonaut Exploration Inc.
Argonaut is a junior mineral exploration company focused on the acquisition, exploration and development of gold, silver and copper bearing 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.