Vancouver, British Columbia--(Newsfile Corp. - November 24, 2017) - Arctic Star Exploration Corp. (TSXV: ADD) (FSE: 82A1) (WKN: A2DFY5) (the "Company" or "Arctic Star") announces that it has completed the second and final tranche of its previously announced non-brokered private placement (the "Private Placement"), as described in its News Release dated October 26, 2017. Tranches one and two of the Private Placement raised a total of $1,692,936.10.
Pursuant to tranche two the Company has issued an aggregate of 7,279,361 units (each, a "Unit") at a price of $0.10 per Unit for gross proceeds of $727,936.10. Each Unit consists of one common share in the capital of the Company (each, a "Share") and one non-transferable share purchase warrant (each, a "Warrant"). Each Warrant is exercisable into one additional Share at a price of $0.15 per Share for a period of 24 months from the closing date. This Private Placement was oversubscribed and replaces the Private Placement previously announced on July 26, 2017.
The Company plans to use the proceeds from the Private Placement for exploration on its 100% owned Timantti Diamond Project (the "Project"), in Finland, and for general working capital. The project lies within the Karelian Craton, which hosts the Grib and Lomonosov diamond mines. As described in the News Release November 23, 2017, exploration activity including: ground geophysics, till sampling and drilling has commenced on the 243 Ha Exploration Permit. The project also includes a district scale 95,700 Ha Exploration Reservation. Exploration activity can be conducted 12 months of the year.
President and CEO, Scott Eldridge stated "Having closed our oversubscribed financing, we now look forward to exploration results being generated from Timantti, which is one of the last known district-scale diamond fields in the world, that's near infrastructure. Previous activity has already identified diamonds at surface and diamond-bearing kimberlites on only a small portion of our extensive land package."
The securities issued under the Private Placement, and the shares that may be issuable on exercise of the Warrants, are subject to a statutory hold period expiring on March 24, 2018.
The Company paid cash finder's fees of $4,800 to a certain finder and issued 48,000 share purchase warrants (the "Finder's Warrants") to one finder in connection with the second tranche of the Private Placement. Each Finder's Warrant is exercisable into one Share at a price of $0.10 per Share for a period of 24 months from the date of issuance.