Arctic Star Exploration Corp. has completed its previously announced non-brokered private placement of units of the company pursuant to which the company sold and issued 14,285,714 units, at seven cents per unit, for approximate gross proceeds of $1-million.
The Warrants issued under the Private Placement are exercisable to purchase 14,285,714 common shares of the Company (the “Shares”), at $0.10 per Share, until July 8, 2024 or earlier subject to an accelerated option clause (the “Acceleration Clause”). Pursuant to the Acceleration Clause, if the common shares of the Company close at or above $0.30 for five consecutive trading days on the TSX Venture Exchange (the “TSXV”), then the Warrants must be exercised within a 60-day period by the warrant holders, or failing which, the Warrants shall expire as null and void.
An aggregate 228,571 Units were sold and issued to a director of the Company.
All securities issued in connection with the Private Placement are subject to a statutory hold period expiring on November 9, 2022 in accordance with applicable securities legislation.
The Company intends to use the net proceeds from the Private Placement to carry out exploration on its Diagras Joint Venture (81.5% Arctic Star) and for general and corporate purposes.
About Arctic Star Exploration Corp.
Arctic Star is predominantly a diamond explorer, recently discovering 6 new kimberlites in the prolific Lac De Gras kimberlite field that supports 2 multi-billion dollar kimberlite mining complexes. The Company also has a 958 Ha Exploration permit containing several diamond-bearing kimberlites on its Timantti project, Kuusamo Finland. Arctic Star has optioned its Stein diamond project in Nunavut to GGL diamonds who plans to work once Covid restrictions lift. The Company continues to look for appropriate diamond opportunities elsewhere.
The Diagras project is a joint venture between Arctic Star Exploration Corp. (currently 81.5%) and Margaret Lake Diamonds Inc. (currently 18.5%).