ARSMF - Ares Strategic Mining Closes Second Tranche of Non-Brokered Private Placement Offering
(TheNewswire)
Vancouver, B.C. June 7, 2024 — TheNewswire – Ares Strategic Mining Inc. (CNSX: ARS) (“ Ares ” or the “ Company ”) is pleased to announce that it has closed thesecond tranche of its previously announced offering of units (each, a“ Unit ”) by issuing 5,537,277 Units at a price of $0.18 per Unit,for aggregate gross proceeds of $996,709.86 . On May 10, 2024, the Company announced anon-brokered private placement offering of a minimum of 5,555,555Units and a maximum of 22,222,222 Units at a price of $0.18 per Unitpursuant to the listed issuer financing exemption (the “ LIFEExemption ”) to raise gross proceeds ofa minimum of $1,000,000 and a maximum of $4,000,000(the “ LIFEOffering ”). On May 31, 2024, theCompany closed the first tranche of the LIFE Offering and issued5,984,986 Units for gross proceeds of $1,077,297.28. To date, the Company has raised an aggregate amount of $2,074,007.14 from the first and second trancheclosings.
James Walker, CEO of Ares, said, “Despite a slowmining market, certain projects have earned investor interest thanksto their ability to make advancements and progress. Ares isfortunately one of those companies, having recently been able todevelop its mine and construct processing facilities, making it ableto attract investment looking for promising prospects. There isclearly great support and enthusiasm for our project, which isencouraging for everyone involved. The Company is close to launchingthe only fluorspar mine in the United States and bringing an exportedindustry back to U.S. shores. We are making tremendous progresstowards commissioning our operation and are looking forward to sharingall our progress occurring at both our mine and processing sites. TheCompany has expedited the installation of new mine works to ensurefeed for our new plant which is currently under construction, and ournew acidspar manufacturing facility which will be delivered nextquarter. The proceeds of our raise will contribute towards our rampinstallation, which is now over halfway to reaching the body of thefluorspar mineralization on our permitted mine site. Once processedthe Company will see its first revenue and shift from being a miningcompany to a manufacturing company. It’s great to see progress inall areas of the Company and watching it get continuously closer toits goals.”
Each Unit consists 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 is exercisable into one (1) Common Share(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 second tranche,an aggregate of $31,016.79 was paid in cash and a total of 172,315finder’s warrants (each, a “ Finder’s Warrant ”) were issued to certainfinders as finder’s fees. Each Finder’s Warrant entitles theholder thereof to acquire one (1) common share in the capital of theCompany (a “ Finder’sWarrant Share ”) at a price of $0.26 perFinder’s Warrant Share for a period of two (2)years following the closing date of the first tranche . The Finder’s Warrants are subject to the AccelerationClause. Any securities issued as Finder’s Feesare subject to a 4-month hold period from the date of 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 Sheepfluorspar property located in Delta, Utah, to provide feed for themanufacturing facility which is currently under construction and forgeneral and corporate working capital purposes . None of the securities issued in connection with the Life Offeringwill be registered under the United States Securities Act of 1933, asamended (the “ 1933Act ”), and none of them may be offered or soldin the United States absent registration or an applicable exemptionfrom the registration requirements of the 1933 Act. This news releaseshall not constitute an offer to sell or a solicitation of an offer tobuy nor shall there be any sale of the securities in any state wheresuch offer, 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; that the Company is close to launchingthe only fluorspar mine in the United States; that the Companycontinues development and construction of the ramp installation; thatthe Company expects revenue once fluorspar is being processed and thatit will then shift from a mining company to a manufacturing Company;risks inherent in the exploration and development of mineral deposits,including risks relating to changes in project parameters as planscontinue to be redefined and the risk that exploration and developmentactivities will cost more than the amount budgeted for such activitiesby the Company; risks relating to changes in mineral prices and theworldwide demand for and supply of minerals; risks related toincreased competition and current global financial conditions; accessand supply risks; risks associated with the Company’s reliance onkey personnel; operational risks; regulatory risks, including risksrelating to the acquisition of the necessary licenses and permits;financing, capitalization and liquidity risks; title and environmentalrisks; and risks relating to the failure to receive all requisiteregulatory approvals. The forward-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.