Vancouver, British Columbia – Arctic Star Exploration Corp. (“Arctic Star” or the “Company”) is pleased to announce a non-brokered private placement financing of up to $800,000 (the “Private Placement”).
The Private Placement will consist of the issuance of up to 8,000,000 flow-through units of the Company (each, a “FT Unit”), at $0.10 per FT Unit for proceeds of up to $800,000, with each FT Unit consisting of one flow-through common share of the Company and one-half of one non-transferable common share purchase warrant (a “Warrant”). Each Warrant will entitle the holder to purchase one non-flow through common share of the Company at a price of $0.20 for a period of 24 months following the closing date.
All of the securities issued pursuant to the Private Placement will be subject to a restricted period of four months and one day from the date of closing. The Private Placement is subject to TSX Venture Exchange (“TSXV”) approval.
The Company intends to use the proceeds from the sale of the FT Units to incur diamond exploration expenditures in the Diagra property located in the North West Territories.
The Company also announces that it has granted an aggregate of 4,000,000 stock options to its directors, officers and consultants for the purchase of up to 4,000,000 common shares of the Company pursuant to its Stock Option Plan. Each option is exercisable for a period of 5 years at a price of $0.12 per common share.
ON BEHALF OF THE BOARD OF DIRECTORS OF
ARCTIC STAR EXPLORATION CORP.
Patrick Power, President & CEO
+1 (604) 218-8772
This news release contains “forward-looking statements” including but not limited to statements with respect to Arctic Star’s plans, the private placement and the use of proceeds. Forward-looking statements, while based on management’s best estimates and assumptions, are subject to risks and uncertainties that may cause actual results to be materially different from those expressed or implied by such forward-looking statements, including but not limited to: risks related to the completion of our planned private placement and our plan to use all or some portion of the proceeds for exploration on the Diagras Diamond Project. There can be no assurance that such statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Factors that could affect our plans include the possibility that we can’t get TSXV approval or we are unable to raise all of the funds we are seeking to raise, in which event we may require all funds raised, if any, to be used for working capital rather than for exploration on the Diagras Diamond Project; and our proposed use of proceeds is subject to receipt of TSXV approval. Accordingly, readers should not place undue reliance on forward-looking statements. Arctic Star undertakes no obligation or responsibility to update forward-looking statements, except as required by law.
Neither the 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.