VANCOUVER,
Oct. 27 /PRNewswire/ - Argentex
Mining Corporation ("Argentex") (TSX-V: ATX, OTCBB: AGXM) is
pleased to announce that IFC, a member of the World Bank Group, has
completed its previously announced private placement, investing net
proceeds of Cdn$7,347,200 in the
company.
In the private placement, IFC purchased 10,804,706 units (each a
"Unit") from Argentex at a price of Cdn$0.68 per Unit. Each Unit consisted of
one Argentex common share (each a "Unit Share") and one
share purchase warrant (each a "Unit Warrant"). Each
Unit Warrant entitles the holder 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 subject to an undertaking from IFC that it will not
exercise Unit Warrants for so long as such exercise would result in
it owning 20% or more of Argentex's issued and outstanding common
shares immediately after giving effect to the exercise.
"This is the single largest investment in our corporate
history. IFC's confidence in Argentex reinforces our
company's high-quality projects and considerable potential," said
Ken Hicks, President of
Argentex. "The private placement also emphasizes our
commitment to local, provincial and national Argentine stakeholders
for the benefit of the country."
IFC offers mining clients in developing countries a broad range
of financial and advisory services throughout the mining life
cycle. Through its early equity investment program, IFC
assists exploration-stage companies such as Argentex with financing
and advice on best practice environmental and social
management.
"Argentex shares IFC's commitment to responsible mining
exploration, and we are excited about the prospects," said
William Bulmer, IFC Global Head for
Mining. "We believe that Santa
Cruz has enormous potential for mining and are pleased to
help Argentex meet its goals for industry best practices."
Argentex intends to use the proceeds of the private placement to
fund exploration and development activities at Pinguino in the
Santa Cruz province and other
properties in the Patagonia region of Argentina, as well as for working capital and
general corporate purposes.
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, Unit Warrants and the Warrant Shares is
a "restricted security" under the Act and will be subject to a hold
period of at least six months from the date issued. In
addition, these securities are 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. Subject to certain exceptions, the Unit Warrants
are non-transferable by their terms during the first 30 months of
their 60-month term.
About IFC
IFC, a member of the World Bank Group, is the largest
development institution focused on the private sector in developing
countries. IFC creates opportunity for people to escape poverty and
improve their lives—by providing financing to help businesses
employ more people and provide essential services, mobilizing
capital from others, and delivering advisory and risk-management
services to ensure sustainable development. In a time of global
economic uncertainty, IFC's new investments climbed to a record
$18 billion in fiscal 2010. For more
information, visit www.ifc.org.
About Argentex
Argentex Mining Corporation (www.argentexmining.com) is a
Delaware corporation. It is
a junior mining company in the exploration stage with significant
holdings in the Patagonia region of Argentina. In total, the
company owns 100% mineral rights to more than 35 properties with
approximately 141,020 hectares of prospective land located in the
Santa Cruz and Rio Negro provinces of Argentina, including the Pinguino
property. Shares of Argentex common stock trade on the TSX
Venture Exchange under the symbol ATX and on the AGXM on the
OTCBB.
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 IFC's belief that Santa Cruz
has enormous potential for mining and that it is pleased to help
Argentex meet its goals for industry best practices, and Argentex's
proposed use of the proceeds. 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 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.
SOURCE Argentex Mining Corporation
Copyright . 27 PR Newswire