Vancouver, British Columbia – Arctic Star Exploration Corp. (“Arctic Star” or the “Company”) announces that it has completed its previously announced non-brokered private placement (the “Private Placement”), as described in its News Release dated November 19, 2019, pursuant to which it has issued an aggregate of 17,368,000 units (each, a “Unit”) at a price of $0.05 per Unit for gross proceeds of $868,400. 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 two years from the closing date.
The Company paid cash finder’s fees of $4,944 to certain finders in connection with the Private Placement.
The Company intends to use the proceeds from the Private Placement for general working capital to explore existing properties and possibly for potential future acquisitions.
William Ferreira, a director of the Company, participated in the Private Placement. Mr. Ferraira’s participation constituted a “related party transaction” within the meaning of Multilateral Instrument 61-101 Protection of Minority Security Holders in Special Transactions (“MI 61-101”), however was exempt from the valuation and minority shareholder approval requirements of MI 61-101 by virtue of the exemptions contained in Sections 5.5(a) and 5.7(a) of MI 61-101, in that the fair market value of the shares purchased by Mr. Ferriera did not exceed 25% of the Company’s market capitalization and the Company’s shares are listed on the TSX Venture Exchange.
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 May 25, 2020.
ON BEHALF OF THE BOARD OF DIRECTORS OF
ARCTIC STAR EXPLORATION CORP.
Patrick Power, President & CEO
+1 (604) 218-8772
ppower@arcticstar.ca
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.
