Toronto, ON, July 10, 2007 -- Argentex Mining Corporation (OTCBB: AGXM) is pleased to announce that it has closed a private placement financing with one institutional investor for gross proceeds of US$2,070,000.
Argentex intends to use these proceeds to continue drilling at the company’s Pinguino property, which has returned massive sulphide mineralization containing zinc, lead and indium as well as high-grade silver-gold values, to expand the development of its Santa Cruz land portfolio with additional exploration on other prospective properties in Santa Cruz, Argentina, and for general corporate purposes.
“To our knowledge, this is the first institutional investment in our company,” said Ken Hicks, President of Argentex. “We believe this investment demonstrates recognition of our significant advances at Pinguino and confidence in its potential. It also provides us with the resources to develop the project more efficiently and aggressively than we have in the past.”
In the financing, Argentex issued 1,800,000 units (“the “Units”) at a price of US$1.15 per Unit consisting of one common share and one half of a share purchase warrant. Each whole warrant will entitle the holder to purchase another Argentex common share for US$1.50 until July 4, 2009.
An update on Argentex’s recent drill program is expected before the end of July, 2007.
ABOUT ARGENTEX:
Argentex Mining Corporation is a mining exploration company with significant holdings in the Patagonia region of Argentina. The company holds an option to acquire 100% mineral rights to the Pinguino property and owns 100% mineral rights to more than 30 properties with over 377,490 acres (152,766 hectares) of prospective land located in the Santa Cruz and Rio Negro provinces of Argentina. Argentex trades under the symbol AGXM on the OTCBB.
FURTHER INFORMATION:
Argentex Mining Corporation
Investor Relations
1-866-594-7687
[email protected]
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 are based on current facts and analysis and on forecasts of future results, estimates of amounts not yet determined and assumptions of management. Forward-looking statements in this news release include statements about “The drill results should provide us with additional insight into the near-surface mineralization along the Marta trend, which is expected to remain a key focus in our ongoing exploration at Pinguino” and “This information could also help Argentex to identify additional attractive targets for future drilling, which we expect to schedule in the coming weeks.” 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, competition for qualified personnel and risks that are inherent in Argentex's operations. These and other risks are described in the Company's Annual Report on Form 10-K and other filings with the Securities and Exchange Commission.
Cautionary Note to US Investors: This news release may contain information about adjacent properties on which we have no right to explore or mine. We advise U.S. investors that the SEC's mining guidelines strictly prohibit information of this type in documents filed with the SEC. Investors are cautioned that mineral deposits on adjacent properties are not indicative of mineral deposits on our properties.