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Argo Gold announces $2.5 Million non-brokered private placement, in part, to fund its new Oil and Gas ventures

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Argo Gold (CSE:ARQ) (OTCQB:ARBTF) (XFRA, XSTU, XBER:A2ASDS) announces $2.5 Million non-brokered private placement, in part, to fund its new Oil and Gas ventures. The company is looking to raise gross proceeds of up to $2.5 million from the placement of up to 25 million shares at a price of $0.10 per share. Net proceeds will be used for the acquisition of the Clearwater oil land, participation in the Sparky Oil Well, the Nisku Oil Farmins, and general corporate purposes.

Additional Information:

Company: Argo Gold Inc.
Website: www.ArgoGold.com
Stock Symbol: CSE:ARQ
Date Published: Jan 16, 2023
Transcript: Available

Video Transcript:

Argo Gold Inc. (CSE:ARQ) (OTCQB:ARBTF) (XFRA, XSTU, XBER:A2ASDS), a Canadian mineral exploration and development company, has announced a non-brokered private placement.

The company is looking to raise gross proceeds of up to $2.5 million from the placement of up to 25 million shares at a price of $0.10 per share.

The shares are trading at $0.115.

Net proceeds will be used for the acquisition of the Clearwater oil land, participation in the Sparky Oil Well, the Nisku Oil Farmins, and general corporate purposes.

With the completion of the Trans Mountain pipeline expansion scheduled for the third quarter of this year, this is a great time to expand into the Alberta oil and gas sector.

The new extension, running from near Edmonton, to Burnaby, British Columbia, will increase the nominal capacity of the current system from approximately 300,000 to 890,000 barrels per day, alleviating one of the bottlenecks of getting Alberta oil to markets.

On June 21, 2022, Argo Gold entered into two letters of intent to farm into two separate Devonian oil and gas mineral lands in southern Alberta, earning a 100% working interest, subject to a gross overriding royalty, in exchange for drilling one well per prospect.

The yield on the two initial test wells is estimated to be in the 100 to 150 barrels per day range with a estimated ultimate recovery expected to be 275,000 and 300,000 barrels of oil respectively.

Four additional well locations have been identified on the two Devonian prospects.

On November 3, 2022, Argo entered into a Farmout Agreement to participate in a horizontal well in the Lindbergh Area near Lloydminster.

Argo Gold will pay 50% to earn a 37.5% interest in the project.

The test well will be drilled to a depth of approximately 1936 metres targeting oil in the Sparky Formation.

On November 7, 2022, Argo entered into an Agreement, subject to normal closing conditions and customary due diligence, to acquire approximately 18,000 contiguous acres, at a cost of $725,000 in the Clearwater Play.

The Clearwater is one of the premier economic oil plays in North America, thanks to its relatively shallow depths and its low cost of development, deploying open hole multilateral horizontal wells that require zero stimulation.

The company has a portfolio of 100%-owned properties located in the northern and northwestern regions of Ontario, Canada, which management believes holds the potential for enormous gold, silver-zinc and cobalt resources with economic viability.

For more information, please visit the company’s website www.ArgoGold.com, contact Judy Baker, CEO, at 416-786-7860 or by email at JBaker@ArgoGold.ca.