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.
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
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.