FSC / Press Release
Argonaut Gold and Prodigy Gold Receive Support From Leading Independent Proxy
Advisor ISS For Plan of Arrangement
Vancouver, British Columbia CANADA, November 20, 2012 /FSC/ - Prodigy Gold Inc.
(PDG - TSX Venture)
Institutional Investor Services (ISS), a leading proxy advisory firm, has
recommended that shareholders of Prodigy Gold (TSX.V: PDG) and Argonaut Gold
(TSX: AR) vote in favour of Argonaut's proposed acquisition of all of Prodigy's
issued and outstanding common shares.
The ISS report notes: "In light of the favorable market reaction, the favorable
termination fee agreement, and no significant noted governance concerns, a vote
FOR this resolution is warranted."
It adds that the potential dilution associated with the transaction will be 28%
on a fully diluted basis for Argonaut common shares "which does not appear to be
Furthermore, ISS says that Prodigy shareholders "are expected to be provided
with exposure to current production and cash flow in a strong gold price
environment and continuing exposure to the advancement of the Magino Property as
well as Argonaut's existing organic growth profile. In light of the significant
implied premium, the favorable market reaction, the strategic rationale and no
significant governance concerns, a vote FOR this resolution is warranted."
If shareholders approve the arrangement, current Argonaut shareholders will hold
approximately 78% of the outstanding Argonaut common shares and current Prodigy
shareholders will hold approximately 22% of the outstanding Argonaut common
Welcoming ISS' recommendation, Argonaut's chief executive, Pete Dougherty said:
"These reports confirm that our agreement with Prodigy is based on the best
interest of all shareholders. We look forward to creating a combined company
that both Argonaut and Prodigy shareholders can be proud of."
Brian Maher, Prodigy's president and chief executive said: "We are very content
with this recommendation. Our shareholders will receive the premium they deserve
and will have the opportunity to participate in a company that has current
production exposure and can both finance and develop Magino."
Shareholders are reminded to vote their proxy FOR the arrangement before the
respective proxy deadlines:
Argonaut: Voting Deadline: Tuesday, December 4, 2012 at 4:00 PM (EST)
For more information and assistance in voting your proxy, Argonaut shareholders
are urged to contact Kingsdale Shareholder Services Inc. at 1-866-229-8166 or by
email at email@example.com.
Prodigy: Voting Deadline: Tuesday, December 4, 2012 at 1:00 PM (PST)
For more information and assistance in voting your proxy, Prodigy shareholders
are urged to contact Kingsdale Shareholder Services Inc. at 1-888-518-6559 or by
email at firstname.lastname@example.org.
If you have any questions regarding the deposit of your Prodigy shares to the
Arrangement, Prodigy's shareholders can contact Kingsdale Shareholder Services
Inc. at 1-888-518-6559 or by email at email@example.com.
About Argonaut Gold
Argonaut Gold is a Canadian gold company engaged in exploration, mine
development and production activities. Its primary assets are the
production-stage El Castillo Mine in the State of Durango, Mexico, the La
Colorada Mine in the State of Sonora, Mexico, the advanced exploration stage San
Antonio project in the State of Baja California Sur, Mexico, and several
exploration stage projects, all of which are located in Mexico.
Prodigy is currently evaluating the development of the Magino mine gold project
in Ontario as an open-pit mining opportunity with the potential for deeper,
higher grade gold production. The Magino project contains Indicated gold
resources of 6,250,990 ounces grading 0.87 g/t gold (223.5 million tonnes), and
355,190 ounces of Inferred gold resources grading 0.80 g/t gold (13.8 million
tonnes) at a cut-off grade of 0.35 g/t gold. For more information please refer
to the Technical Report on the Magino Property, Wawa, Ontario dated October 4,
2012 available on SEDAR or Prodigy's website.
Argonaut Gold Inc.
Investor Relations Manager
(775) 284-4422 x 101
Prodigy Gold Incorporated
Brian J. Maher
President and Chief Executive Officer
Vice-President, Kingsdale Communications Inc.
To view this press release as a webpage, please click on the following link:
Source: Prodigy Gold Inc. (TSX-V: PDG) http://www.www.prodigygold.com
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-0- Nov/20/2012 13:00 GMT
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