Washington, D.C., September 24, 2010—IFC, a member of the World Bank Group, today agreed to invest 7,347,200 million Canadian dollars in Argentex Mining Corporation to support a mineral exploration project that is expected to provide jobs and economic benefits for Argentina once the potential mine is developed.
Argentex is a Canada-based mining company exploring for minerals in the Patagonia region of Argentina. IFC’s investment will be used by the company to help develop the Pinguino exploration project in the southern province of Santa Cruz and toward its general corporate working capital. IFC also will work with the company to help ensure that exploration and any subsequent mine development is carried out in an environmentally and socially sustainable manner.
“Argentex is very pleased to welcome IFC as a major stakeholder,” said Ken Hicks, Argentex’s President. “We look forward to working with IFC to ensure that the 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.”
IFC is helping Argentina increase its investment in export-oriented sectors and use its mineral resources for long-term economic growth. Mining exploration projects such as Argentex’s Pinguino have the potential to provide jobs, stimulate local economies and attract foreign direct investment when they are fully developed.
“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 practice”.
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.
Legal Disclosure about IFC's Investment
The investment of approximately 7,347,200 million Canadian dollars in Argentex will result in IFC acquiring an aggregate of 10,804,706 units. Each unit is composed of one common share and one warrant. Each of the warrants entitles the holder to purchase one common share of Argentex at an exercise price of $1.14 Canadian dollars per common share for a period of five years.
The issue price per unit is 0.68 Canadian dollars. It is expected that upon completion of this subscription there will be 55,524,794 Argentex shares outstanding and it is expected that IFC will directly hold approximately 19.5 percent of the company’s outstanding share capital and approximately 32.6 percent of the company’s outstanding share capital assuming the exercise of all of IFC’s warrants acquired under this private placement.
The transaction is expected to close in October, 2010. IFC is acquiring the units for investment purposes as described above. IFC may, in the future, take such actions in respect of its holdings as IFC deems appropriate in light of the circumstances then existing. To obtain a copy of the report filed with the Canadian securities regulatory authorities in respect of which this news release relates, please contact Josef Skoldeberg at the phone number or e-mail address referred to above. IFC’s headquarters are located at 2121 Pennsylvania Avenue, N.W., Washington, D.C., 20433, U.S.A.
IFC has entered into an undertaking with the TSX Venture Exchange which would restrict its ability to exercise the warrants if doing so would result in IFC owning or controlling 20% or more of the outstanding voting securities of Argentex immediately after giving effect to such exercise. This undertaking will terminate after IFC sells any voting securities and/or if the company issues any additional voting securities which would result in IFC owning or controlling less than 20% of the total outstanding voting securities of Argentex at that time (calculated on the basis that any outstanding Warrants held by IFC have been exercised in full).
The shares and the warrants will be a "restricted security” under the United States Securities Act of 1933 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.
About IFC
IFC, a member of the World Bank Group, is the largest development institution focused on the private sector in developing countries. We create 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, our 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 under the symbol AGXM on the OTCBB and on the TSX Venture Exchange under the symbol ATX.
Argentex is a Canada-based mining company exploring for minerals in the Patagonia region of Argentina. IFC’s investment will be used by the company to help develop the Pinguino exploration project in the southern province of Santa Cruz and toward its general corporate working capital. IFC also will work with the company to help ensure that exploration and any subsequent mine development is carried out in an environmentally and socially sustainable manner.
“Argentex is very pleased to welcome IFC as a major stakeholder,” said Ken Hicks, Argentex’s President. “We look forward to working with IFC to ensure that the 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.”
IFC is helping Argentina increase its investment in export-oriented sectors and use its mineral resources for long-term economic growth. Mining exploration projects such as Argentex’s Pinguino have the potential to provide jobs, stimulate local economies and attract foreign direct investment when they are fully developed.
“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 practice”.
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.
Legal Disclosure about IFC's Investment
The investment of approximately 7,347,200 million Canadian dollars in Argentex will result in IFC acquiring an aggregate of 10,804,706 units. Each unit is composed of one common share and one warrant. Each of the warrants entitles the holder to purchase one common share of Argentex at an exercise price of $1.14 Canadian dollars per common share for a period of five years.
The issue price per unit is 0.68 Canadian dollars. It is expected that upon completion of this subscription there will be 55,524,794 Argentex shares outstanding and it is expected that IFC will directly hold approximately 19.5 percent of the company’s outstanding share capital and approximately 32.6 percent of the company’s outstanding share capital assuming the exercise of all of IFC’s warrants acquired under this private placement.
The transaction is expected to close in October, 2010. IFC is acquiring the units for investment purposes as described above. IFC may, in the future, take such actions in respect of its holdings as IFC deems appropriate in light of the circumstances then existing. To obtain a copy of the report filed with the Canadian securities regulatory authorities in respect of which this news release relates, please contact Josef Skoldeberg at the phone number or e-mail address referred to above. IFC’s headquarters are located at 2121 Pennsylvania Avenue, N.W., Washington, D.C., 20433, U.S.A.
IFC has entered into an undertaking with the TSX Venture Exchange which would restrict its ability to exercise the warrants if doing so would result in IFC owning or controlling 20% or more of the outstanding voting securities of Argentex immediately after giving effect to such exercise. This undertaking will terminate after IFC sells any voting securities and/or if the company issues any additional voting securities which would result in IFC owning or controlling less than 20% of the total outstanding voting securities of Argentex at that time (calculated on the basis that any outstanding Warrants held by IFC have been exercised in full).
The shares and the warrants will be a "restricted security” under the United States Securities Act of 1933 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.
About IFC
IFC, a member of the World Bank Group, is the largest development institution focused on the private sector in developing countries. We create 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, our 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 under the symbol AGXM on the OTCBB and on the TSX Venture Exchange under the symbol ATX.
In Washington, D.C.:
Josef Skoldeberg
Tel: (202) 473-6978
E-mail: jskoldeberg@ifc.org
Adriana Gomez
Tel: (202) 458-5204
E-mail: agomez@ifc.org
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