(TheNewswire)
June 22, 2022 – TheNewswire - Vancouver, British Columbia– Arctic Star ExplorationCorp. (TSXV:ADD)(FRANKFURT:82A1) (WKN:A2DFY5) (“ Arctic Star ” or the“ Company ”) further to the Company’s news release dated June 21,2022, Arctic Star is pleased to confirm that its non-brokered private placement (the“ PrivatePlacement ”) of units of the Company(the “ Units ”) at a price of $0.07 per Unit, for gross proceeds of upto $1,000,000 is fully subscribed.
Each Unit will be comprised of one common share in thecapital of the Company (each, a “ Share ”) and onenon-transferable share purchase warrant (each, a “ Warrant ”). EachWarrant is exercisable to purchase one additional Share for a periodof 24 months from the closing date at an exercise price of $0.10 perShare.
The Warrants will contain an accelerated option clausethat states that if the Shares close at or above $0.30 for 5consecutive trading days on the TSX VentureExchange (the “ TSXV ”), then theWarrants must be exercised within a 60 day period by the warrantholders, or failing which, the Warrants shall expire as null andvoid.
Subject to conditional approval of the TSXV, theCompany expects to close the Private Placement in the week of June 27,2022.
Closing of the Private Placement is subject to certaincustomary conditions, including, without limitation, approval of theTSXV. The securities to be issued under the Private Placement will beoffered by way of private placement in the provinces of BritishColumbia, Alberta, and Ontario and such other provinces or territoriesof Canada as may be determined by the Company, in each case, pursuantto applicable exemptions from the prospectus requirements underapplicable securities laws. Securities issued under the PrivatePlacement will be subject to a hold period which will expire fourmonths and one day from the date of closing of the PrivatePlacement.
The Company intends to use the net proceeds from thePrivate Placement to carry out exploration on its Diagras JointVenture (81.5% Arctic Star) and for general and corporatepurposes.
Kimberlite samples from the Arbutus kimberlite andSequoia kimberlite have arrived at the SRC (Saskatchewan ResearchCouncil) Diamond laboratory in Saskatoon and processing has commenced.The first set of diamond results are expected mid-July.
Arctic Star is predominantly a diamond explorer,recently discovering 6 new kimberlites in the prolific Lac De Graskimberlite field that supports 2 multi-billion dollar kimberlitemining complexes. The Company also has a 958 Ha Exploration permitcontaining several diamond-bearing kimberlites on its Timanttiproject, Kuusamo Finland. Arctic Star has optioned its Stein diamondproject in Nunavut to GGL diamonds who plans to work once Covidrestrictions lift. The Company continues to look for appropriatediamond opportunities elsewhere.
The Diagras project is a joint venture between ArcticStar Exploration Corp. (currently 81.5%) and Margaret Lake DiamondsInc. (currently 18.5%).
ON BEHALF OF THE BOARD OF DIRECTORS OF
ARCTIC STAR EXPLORATION CORP.
“Patrick Power”
Patrick Power, President & CEO
+1 (604) 218-8772
ppower@arcticstar.ca
This news release contains"forward-looking statements" including but not limited tostatements with respect to Arctic Star’s plans, the PrivatePlacement and the use of proceeds. Forward-looking statements, whilebased on management's best estimates and assumptions, are subject torisks and uncertainties that may cause actual results to be materiallydifferent from those expressed or implied by such forward-lookingstatements, including but not limited to: risks related to thecompletion of the Private Placement and our plan to use all or someportion of the proceeds for exploration on the Diagras DiamondProject. There can be no assurance that such statements will prove tobe accurate, as actual results and future events could differmaterially from those anticipated in such statements. Factors thatcould affect our plans include the possibility that we do not receivefinal TSXV approval for the Private Placement or we are unable toraise all of the funds we are seeking to raise, in which event we mayrequire all funds raised, if any, to be used for working capitalrather than for exploration on the Diagras Diamond Project; and ourproposed use of proceeds is subject to receipt of TSXV approval.Accordingly, readers should not place undue reliance onforward-looking statements. Arctic Star undertakes no obligation orresponsibility to update forward-looking statements, except asrequired by law.
Neither the TSX Venture Exchange norits Regulation Services Provider (as that term is defined in thepolicies of the TSX Venture Exchange) accepts responsibility for theadequacy or accuracy of this release.
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