Argentex Mining Announces $5.0 Million Strategic Investment From Austral Gold Ltd.

Argentex Mining Announces $5.0 Million Strategic Investment From Austral Gold 
Ltd. 
VANCOUVER, BRITISH COLUMBIA -- (Marketwire) -- 03/25/13 -- Argentex
Mining Corporation ("Argentex" or the "Company") (TSX
VENTURE:ATX)(OTCQB:AGXMF) is pleased to announce that it has signed a
Term Sheet with Austral Gold Limited ("Austral Gold") (ASX:AGD)
pursuant to which Austral Gold has agreed that it or one of its
affiliates (the "Purchaser") will purchase, in a private placement,
17,347,866 units (each, a "Unit") of the Company at a price of
$0.2882 per Unit for gross proceeds of $5,000,000 (the "Financing").
Each Unit will consist of one Argentex common share (each a "Unit
Share") and one-half of one share purchase warrant (each whole
warrant a "Unit Warrant"), and each Unit Warrant will entitle the
holder to purchase one additional Argentex common share at an
exercise price of $0.40 for a period of 60 months from closing. The
Unit Share price represents a 92% premium, and the Unit Warrant
exercise price represents a 167% premium, to the closing price of the
Company's common shares on the TSX Venture Exchange on March 22,
2013. 
The parties expect to close on or around April 12, 2013. At closing,
it is anticipated that the purchaser will own approximately 19.9% of
the Company's issued and outstanding common shares, on an undiluted
basis, and it has agreed that it will not exercise any of the Unit
Warrants if doing so would cause it to hold 20% or more of the
Company's issued and outstanding common shares. 
"We view this strategic investment by Austral Gold as very
significant for Argentex and its development and exploration plans
for it's Argentinean projects. First, it enables us to advance the
development activities at our flagship Pinguino project by providing
the sufficient funding for this and as well as for working capital,
and leaving us with a treasury in excess of $6 million. Secondly, it
adds local experience through a direct association with Austral
Gold's Argentinean Chairman and major shareholder Mr. Eduardo
Elsztain. We expect that this local knowledge, credibility and
relationship network will help us advance the development of
Pinguino. Finally, it provides us with access to Austral Gold's
experienced management team. This team discovered and developed El
Penon in Chile (sold to Yamana Gold Inc.), helped discover and
develop the Cerro Negro project in Argentina before it was sold to
Goldcorp Inc., and have recommissioned and developed the Guanaco open
pit mine in Chile into a well performing underground gold mine," said
Michael Brown, President and CEO of Argentex. 
"We are pleased to build a strong relationship with Argentex Mining,
and gain access to the impressive and advanced Pinguino Silver-Gold
Project, and a solid portfolio of other key exploration assets in
Argentina. Our team at Austral Gold has been successful in bringing
the Guanaco gold mine in Chile into production, and we look to
leverage our development skills and access to capital to advance
Pinguino through the development cycle. Together with the respected
exploration team at Argentex, we look to expand on the current
resources discovered at Pinguino and build an exciting future in
Argentina and Chile," commented Mr. Eduardo Elsztain, Chairman of
Austral Gold. 
The combination brings together global leaders in epithermal
exploration at Argentex with an experienced development and
operational technical team at Austral Gold, along with the leadership
of accomplished Argentinean businessman Mr. Eduardo Elsztain. Mr.
Elsztain heads one of Argentina's most respected group of companies
which includes the country's leader in real estate with investments
in shopping centers, office buildings and hotels in its own country
and in the USA, a major operation in agriculture in Argentina, Brazil
and other South American countries, gold & silver mining businesses
in Chile and Argentina, and banking and asset management businesses,
among others. 
The $5.0 million investment will provide the Company with a strong
treasury and assistance of a strategic partner to focus on advancing
the Pinguino silver-gold project. Argentex will use approximately 60%
of the proceeds to fund its ongoing exploration programs in the
Patagonia region of Argentina, with the balance of approximately 40%
to be used for working capital and general corporate purposes. 
Argentex has agreed to grant to Austral Gold comprehensive
anti-dilution rights for one year, and limited anti-dilution rights
after the first anniversary of the closing. These are in force for as
long as the purchaser maintains ownership of at least 10% of the
Company's issued and outstanding common shares. 
At closing, the parties will enter into one or more ancillary
agreements providing that, for so long as the purchaser owns at least
10% of the Company's issued and outstanding common shares, it will
have the anti-dilution rights referred to above, a right to nominate
one director to the Argentex Board and its committees and a right to
nominate one member of the Argentex Technical Advisory Board. In
addition, the purchaser will agree, for a period of time yet to be
determined, not to support any effort to gain control of Argentex by
way of proxy solicitation or takeover bid. 
Both parties have agreed that, following the Closing, they will
actively consider and discuss a possible business combination between
Austral Gold Ltd. and the Company by way of a plan of arrangement,
merger, exchange of shares or any other form or type of business
combination mutually acceptable to both parties. 
All securities issued in the Financing will be subject to a statutory
four-month hold period and the purchaser has further agreed not to
transfer any of the Unit Shares or Unit Warrants to any transferee
other than its affiliates during the year following closing. The
financing is subject to a number of conditions, including, without
limitation, receipt of all required approvals, including approval of
the TSX Venture Exchange. 
About Austral Gold 
Austral Gold Limited is an Australian-based exploration company.
Through its Chilean subsidiary, Guanaco Compania Minera, it owns the
Guanaco gold and silver mine in Chile, which produced 28,000 oz Au in
calendar 2012. Austral Gold has further exploration areas in Santa
Cruz, Argentina. The Company listed on the Australian Stock Exchange
in April 1997 to develop gold interests both in Australia and
overseas. Austral Gold has the support of major international
institutions and investors such as Mr. Eduardo Elsztain of Argentina. 
About Argentex 
Argentex Mining Corporation is an exploration company focused on
advancing its Pinguino silver-gold project in Santa Cruz, Argentina.
In total, Argentex owns 100% of the mineral rights to more than 35
properties located within approximately 307,981 acres (124,636
hectares) of highly prospective land located in the Santa Cruz and
Rio Negro provinces. Shares of Argentex common stock trade under the
symbol ATX on the TSX Venture Exchange and under the symbol AGXMF on
the OTCQB. Neither TSX Venture Exchange nor its Regulation Services
Provider (as that term is defined in the policies of the TSX Venture
Exchange) accepts responsibility for the adequacy or accuracy of this
release. 
On behalf of Argentex Mining Corporation:  
Michael Brown, President and CEO 
Statements in this news release that are not historical facts are
forward-looking statements that are subject to risks and
uncertainties. Words such as "expects", "intends", "plans", "may",
"could", "should", "anticipates", "likely", "believes" and words of
similar import also identify forward-looking statements.
Forward-looking statements in this news release include the Company's
expectation that this strategic investment will help it advance
Pinguino through the development cycle or expand the current
resource, and that it will provide access to Austral Gold's
experienced management team. Actual results may differ materially
from those currently anticipated due to a number of factors beyond
the Company's control. These risks and uncertainties include, among
other things, the availability of the Company's consultants and risks
that are inherent in Argentex's operations including the risks that
the Company may not find any minerals in commercially feasible
quantity or raise enough money to fund its exploration plans. These
and other risks are described in the Company's Annual Information
Form and other public disclosure documents filed on the SEDAR website
maintained by the Canadian Securities Administrators and the EDGAR
website maintained by the Securities and Exchange Commission.
Contacts:
Argentex Mining Corporation
Peter A. Ball
EVP Corporate Development
604-568-2496 (ext. 103) or 1-888-227-5285 (ext. 103)
peter@argentexmining.com
www.argentexmining.com
 
 
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