As a result of this placement Austral Gold is Argentex's second largest shareholder with 11.7% of its outstanding shares. International Finance Corporation ("IFC") remains the largest shareholder owning approximately 13.4% of its outstanding shares. Upon full conversion of the convertible debenture, which is scheduled to convert in monthly installments over the next nine months, Austral Gold would beneficially own 19.9% of the Argentex common shares outstanding, and the IFC share position in Argentex would be approximately 12.1%.
About Wayne Hubert:
Wayne Hubert is currently a director of Austral Gold. Mr. Hubert is a highly experienced and accomplished mining executive with over 20 years' experience working in the South American resources sector. From 2006 until 2010 he was the Chief Executive Officer of ASX-listed Andean Resources Limited ("Andean"), and led the team that increased Andean's value from CDN$70 million to CDN$3.6 billion in four years. Andean was developing a world-class silver and gold mine in Argentina with a resource of over 5 million ounces of gold when it was acquired by Goldcorp Inc.
Mr. Hubert, B.Sc. (Engineering), MBA, has also held executive roles for Meridian Gold with experience in operations, finance and investor relations. Currently he is a Director of Samco Gold Limited (TSX VENTURE: SGA), which is focused on gold exploration in Argentina, and a Director of Midas Gold Corp (TSX: MAX), a Canadian company with a 5.7 million ounce gold resource.
The focus of the Company is to upgrade the Pinguino silver-gold deposit with a resource development drill program. The drill program, once reviewed and approved by the Board, will commence shortly with the goal of positioning the Company to initiate a new Preliminary Economic Assessment. The Company will announce full details on the drill program in the near future.
About the Private Placement
In the private placement, Austral Gold purchased from Argentex 8,632,000 units (each a "Unit") at a price of CDN$0.2882 per Unit. Each Unit consists of one common share and one-half of a share purchase warrant. Each whole warrant entitles the holder to purchase one additional Argentex common share at an exercise price of CDN$0.40 for five years. Each Warrant contains a provision that prohibits exercise if exercise would result in the holder owning more than 19.9% of Argentex's issued and outstanding common shares immediately after giving effect to the exercise.
In addition, Austral Gold's wholly-owned subsidiary in Argentina, Austral Gold Argentina S.A., purchased 242,824 Units and a non-interest bearing convertible debenture in the original principal amount of US$2,300,000 (the "Debenture"). The Debenture can be repaid only by conversion of the principal amount into Units. Upon conversion of the entire principal amount, Argentex will issue to the Argentine subsidiary an additional 8,389,176 Units at a conversion price equal to the Unit Price (both the principal amount of the Debenture and the conversion price have been expressed in U.S. dollars at the Bank of Canada's noon rate in effect on June 28, 2013).
In an Investment Agreement signed at the closing, Argentex agreed that so long as Austral Gold owns at least 10% of the outstanding Argentex common shares, it will have the right to nominate one member of the Argentex Board, one member of its Technical Advisory Board and an Assistant Corporate Secretary, as well as anti-dilution and other rights. Austral Gold has nominated Mr. Wayne Hubert to the Argentex Board and Mr. Stabro Kasaneva to its Technical Advisory Board.
Most Popular Stories
- Twitter Coming to Phones Without Internet
- Twitter Names Woman to Board
- Thalia Gets Star on Hollywood Walk of Fame
- Rand Paul Signs up for Obamacare
- Obamacare Doing Just Fine, Ky. Governor Says
- How to Arm Yourself Against CryptoLocker Virus
- World Cup Draws: Coaches, Players Offer Insights
- Warner Bros. Unleashes 'Hobbit: Desolation of Smaug' Merchandise
- Texas Chiller Moves East
- Hispanic Employment Improves in November