Argonaut Gold and Alio Gold Mail Joint Management Information Circular in Connection With Special Meetings to Approve Friendly At-Market Merger

TORONTO and VANCOUVER, British Columbia, April 22, 2020 (GLOBE NEWSWIRE) -- Argonaut Gold Inc. (“Argonaut” or “Argonaut Gold”) (TSX: AR) and Alio Gold Inc. (“Alio” or “Alio Gold”) (TSX, NYSE-A: ALO) have filed the joint management information circular and related meeting materials in connection with their respective special meetings of securityholders (the “Meetings”) to be held on May 20, 2020. The purpose of the Meetings is to seek approval for a number of matters, including the proposed friendly, at-market merger announced on March 30, 2020, whereby Argonaut and Alio will combine to create a diversified intermediate producer in North America.

Under the terms of the Arrangement Agreement, all of the Alio issued and outstanding common shares will be exchanged on the basis of 0.67 of an Argonaut common share per each Alio common share (the “Exchange Ratio”). The Exchange Ratio has been agreed based on the volume-weighted average prices of Argonaut and Alio common shares over the 20 trading days ended on March 27, 2020.  Upon completion of the Transaction, existing Argonaut and Alio shareholders will own approximately 76% and 24% of the combined company, respectively.

Mailing of the joint management information circular and related meeting materials has commenced and shareholders of both Argonaut and Alio should receive them shortly. All of the meeting materials can be downloaded from Argonaut’s website at http://www.argonautgold.com/ and from Alio’s website at http://www.aliogold.com/ and also from each company’s profile on SEDAR at www.sedar.com.

The Arrangement Agreement has been unanimously approved by the boards of directors of Argonaut and Alio, and each board recommends that their respective shareholders vote in favour of the Transaction.

To proactively deal with the unprecedented public health impact of COVID-19, both Meetings will be held in a virtual only format.

The Argonaut meeting will be conducted via live online audio only at https://web.lumiagm.com/221570123 at 11:30 am EDT on May 20, 2020.

The Alio meeting will be conducted via live audio webcast only at https://web.lumiagm.com/264350037 at 8:30 am PDT on May 20, 2020.

About Argonaut

Argonaut Gold is a Canadian gold company engaged in exploration, mine development and production.  Its primary assets are the El Castillo mine and San Agustin mine, which together form the El Castillo Complex in Durango, Mexico and the La Colorada mine in Sonora, Mexico.  Advanced exploration projects include the Cerro del Gallo project in Guanajuato, Mexico and the Magino project in Ontario, Canada.  The Company continues to hold the San Antonio advanced exploration project in Baja California Sur, Mexico and several exploration stage projects, all of which are located in North America.