VANCOUVER, Sept. 24 /PRNewswire-FirstCall/ - Argentex Mining
Corporation ("Argentex") (TSX-V: ATX, OTCBB: AGXM) is pleased to
announce that it has signed a definitive agreement with IFC. IFC, a
member of the World Bank Group, has agreed to invest in a private
placement for gross proceeds of Cdn$7,347,200.
"Argentex is very pleased to welcome IFC as a major
stakeholder," said Ken Hicks,
President of Argentex. "We look forward to working with them to
ensure that continued progress at our Pinguino mineral exploration
project in Argentina follows
globally recognized best practices for the mineral exploration
industry, the environment and for working with local
communities."
Argentex intends to use the proceeds of the private placement to
fund exploration and development activities at Pinguino and other
properties in the Patagonia region of Argentina, as well as for working capital and
general corporate purposes.
Argentex anticipates that this private placement should close in
October. Closing continues to be subject to conditions, including
approval by the TSX Venture Exchange.
In the private placement, IFC will purchase 10,804,706 Units
(the "Units") at a price of Cdn $0.68
per Unit for gross proceeds of Cdn$7,347,200. Each Unit will consist of one
common share of Argentex (each a "Unit Share") and one common share
purchase warrant (a "Warrant"). Each Warrant will entitle the
purchaser to purchase one additional common share of Argentex (each
a "Warrant Share") at a price of Cdn$1.14 for a period of five years after
closing.
Except as specified in this press release, none of the
securities to be offered or sold in this private placement have
been or will be registered under the United States Securities Act
of 1933, as amended (the "Act"), and none of them may be offered or
sold in the United States absent
registration or an applicable exemption from the registration
requirements of the Act.
Each of the Unit Shares and the Warrant Shares will be a
"restricted security" under the Act and will be subject to a hold
period of at least six months from the date they are issued. In
addition, these securities will be subject to a hold period of four
months and one day after closing under applicable Canadian
securities laws and the requirements of the TSX Venture Exchange.
The Warrants will also be restricted securities subject to these
restrictions but, in addition, the warrants will be
non-transferable by their terms during the first 30 months, subject
to certain exceptions.
Statements in this news release that are not historical facts
are forward-looking statements that are subject to risks and
uncertainties. Words such as "expects", "intends", "plans", "may",
"could", "should", "anticipates", "likely", "believes" and words of
similar import also identify forward-looking statements.
Forward-looking statements in this news release include statements
about Argentex's proposed use of the proceeds of the private
placement and the anticipated date of closing . Actual results may
differ materially from those currently anticipated due to a number
of factors beyond the Company's control. These risks and
uncertainties include, among other things, the risk that Argentex
or the nature or amount of the proposed investment will not be
approved by IFC, as well as risks that are inherent in Argentex's
operations including the risk that it might not find any minerals
in commercially feasible quantity or raise funds sufficient to
prosecute its exploration plans. These and other risks are
described in the Company's Annual Report on Form 10-K and other
filings with the Securities and Exchange Commission.
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.
CONTACT: Ken Hicks, President,
Argentex Mining Corporation, 1-866-594-7687,
info@argentexmining.com
SOURCE Argentex Mining Corporation
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