ARSMF - Ares Strategic Mining Closes First Tranche of Non-Brokered Private Placement Offering
(TheNewswire)
Vancouver, B.C. – TheNewswire - May 31, 2024 — Ares Strategic MiningInc. (CNSX: ARS) (“ Ares ” or the“ Company ”) is pleased to announce that,further to its news release dated May 10, 2024 which announced anon-brokered private placement offering of a minimum of 5,555,555units of the Company (each, a “ Unit ”) and a maximumof 22,222,222 Units at a price of $0.18 per Unit pursuant to thelisted issuer financing exemption (the “ LIFEExemption ”) for gross proceeds of aminimum of $1,000,000 and a maximum of $4,000,000(the “ LIFEOffering ”), it has closed the firsttranche of the LIFE Offering by issuing 5,984,986 Units at a price of$0.18 per Unit, for aggregate gross proceeds of$1,077,297.28 .
James Walker, CEO of Ares, said, “We have alreadyexceeded the minimum we were seeking from this offering in this firsttranche, and we continue to receive more orders for our next tranches.There is clearly great support and enthusiasm for our project, whichis encouraging for everyone that has worked hard to build thisproject. The Company is close to launching the only fluorspar mine inthe United States and bringing an exported industry back to U.S.shores. We are making tremendous progress towards commissioning ouroperation and are looking forward to sharing all our progressoccurring at both our mine and processing sites. The Company hasexpedited the installation of new mineworks to ensure feed for our newplant, which is currently under construction, and our new acidsparmanufacturing facility which will be delivered next quarter. Theproceeds of our raise will contribute towards our ramp installation,which is now over halfway to reaching the body of the fluorsparmineralization on our permitted mine site. Once processed the Companywill see its first revenue and shift from being a mining company to amanufacturing company. It’s great to see progress in all areas ofthe Company and watching it get continuously closer to itsgoals.”
Each Unit shall consist of one (1) common share in thecapital of the Company (each, a “ Common Share ”) andone non-transferable Common Share purchase warrant (each, a“ Warrant ”). Each Warrant will be exercisable into one (1) CommonShare (each, a “ WarrantShare ”) at a price of $0.26 per Common Sharefor a period of two (2) years following the closing date of the LifeOffering, provided that, if the 10-day volume-weighted average tradingprice of the Common Shares as quoted on the Canadian SecuritiesExchange (the “ CSE ”) (or such other securities exchange onwhich the Common Shares may be traded at such time) is equal to orgreater than $0.40 at the close of any trading day, then the Companymay, at its discretion, accelerate the expiry date of the Warrants byissuing a news release (a “ Warrant Acceleration News Release ”)announcing that the expiry date of the Warrants shall be deemed to beon the 30th day following the date of the Warrant Acceleration NewsRelease (the “ AcceleratedExpiry Date ”) (the “ Acceleration Clause ”). All Warrants that remain unexercised following theAccelerated Expiry Date shall immediately expire and all rights ofholders of such Warrant shall be terminated without any compensationto such holder. Units offered under the Life Exemption will not besubject to resale restrictions for Canadian resident investorspursuant to applicable Canadian securities laws.
In connection with the closing of the first tranche, anaggregate of $86,183.80 was paid in cash and a total of 478,798finder’s warrants (each, a “ Finder’s Warrant ”) were issued toCanaccord Genuity Corp. as finder’s fees. Each Finder’s Warrantentitles the holder thereof to acquire one (1) common share in thecapital of the Company (a “ Finder’s Warrant Share ”) at a price of$0.26 per Finder’s Warrant Share for a period of two (2) years following the closing date of the firsttranche . The Finder’s Warrants are subject tothe Acceleration Clause. Any securities issuedas Finder’s Fees are subject to a 4-month hold period from the dateof issuance.
The balance of the LIFE Offering is expected to closeon or before June 24, 2024, and is subject to certain conditions,including, but not limited to, the receipt of all necessary regulatoryand other approvals. The Company intends to use the proceeds of theLIFE Offering as disclosed in the Life Offering Document dated May 9,2024, which is available under the Company’s profile on www.sedarplus.com and on theCompany’s website ( www.aresmining.com ), for completing the ramp installation to intersect fluorsparmineralization at depth at its Lost Sheep fluorspar property locatedin Delta, Utah, to provide feed for the manufacturing facility whichis currently under construction and for general and corporate workingcapital purposes . None of the securitiesissued in connection with the Life Offering will be registered underthe United States Securities Act of 1933, as amended (the“ 1933 Act ”), and none of them may be offered or sold in the UnitedStates absent registration or an applicable exemption from theregistration requirements of the 1933 Act. This news release shall notconstitute an offer to sell or a solicitation of an offer to buy norshall there be any sale of the securities in any state where suchoffer, solicitation, or sale would be unlawful.
ON BEHALF OF THE BOARD OF DIRECTORS OF
ARES STRATEGIC MINING INC.
James Walker
Chief Executive Officer and President
For further information, please contact James Walker byemail at jwalker@aresmining.com
DISCLOSURE AND FORWARD-LOOKINGSTATEMENTS:
Certain statements contained in thisnews release constitute forward-looking information. These statementsrelate to future events or future performance. The use of any of thewords “could”, “intend”, “expect”, “believe”,“will”, “projected”, “estimated” and similar expressionsand statements relating to matters that are not historical facts areintended to identify forward-looking information and are based on theCompany’s current belief or assumptions as to the outcome and timingof such future events.
In particular, this news releasecontains forward-looking information relating to, among other things,the Life Offering, including the total anticipated proceeds, theexpected use of proceeds and the closing (including the proposedclosing date) of the balance of the Life Offering. Various assumptionsor factors are typically applied in drawing conclusions or making theforecasts or projections set out in forward-looking information,including the assumption that the Company will close the balance ofLife Offering on the timeline anticipated, will raise the balance ofthe gross proceeds from the Life Offering and will use the proceeds ofthe Life Offering as anticipated. Those assumptions and factors arebased on information currently available to the Company. Although suchstatements are based on reasonable assumptions of the Company’smanagement, there can be no assurance that any conclusions orforecasts will prove to be accurate.
Forward-looking information involvesknown and unknown risks, uncertainties and other factors which maycause the actual results, performance or achievements to be materiallydifferent from any future results, performance or achievementsexpressed or implied by the forward-looking information. Such factorsinclude: the risk that the Life Offering does not close on thetimeline expected, or at all; the risk that the Company raises lessthan the anticipated amount of gross proceeds from the Life Offering;the risk that the Company does not use the proceeds from the LifeOffering as currently expected; risks inherent in the exploration anddevelopment of mineral deposits, including risks relating to changesin project parameters as plans continue to be redefined and the riskthat exploration and development activities will cost more than theamount budgeted for such activities by the Company; risks relating tochanges in mineral prices and the worldwide demand for and supply ofminerals; risks related to increased competition and current globalfinancial conditions; access and supply risks; risks associated withthe Company’s reliance on key personnel; operational risks;regulatory risks, including risks relating to the acquisition of thenecessary licenses and permits; financing, capitalization andliquidity risks; title and environmental risks; and risks relating tothe failure to receive all requisite regulatory approvals. Theforward-looking information contained in this news release is made asof the date hereof, and the Company is not obligated to update orrevise any forward-looking information, whether as a result of newinformation, future events or otherwise, except as required byapplicable securities laws. Because of the risks, uncertainties andassumptions contained herein, investors should not place unduereliance on forward-looking information. The foregoing statementsexpressly qualify any forward-looking information containedherein.
NEITHER THE CANADIAN SECURITIESEXCHANGE NOR ITS REGULATIONS SERVICES PROVIDER HAVE REVIEWED OR ACCEPTRESPONSIBILITY FOR THE ADEQUACY OR ACCURACY OF THIS RELEASE.
NOT FOR DISSEMINATION IN THE UNITED STATES ORTHROUGH U.S. NEWSWIRE SERVICES
Copyright (c) 2024 TheNewswire - All rights reserved.