Arctic Star Exploration (TSXV: ADD) should now be fully cashed up and ready to explore following the closing of a private placement transaction. The company has formally closed on a financing, which saw the sale of 14.3 million units.
Under the terms of the financing, units were issued at a price of $0.07 per each, with each unit containing one common share and one common share purchase warrant. Warrants contain an exercise price of $0.10 per each, and are valid for a period of two years.
An acceleration clause is also in play, enabling the company to accelerate the expiry of the warrants in the event the equity trades about $0.30 for a period of five days on a volume weighted basis.
Proceeds from the financing, which amount to roughly $1.0 million, are to be used for the exploration of the firms Diagras diamond property, in addition to general and corporate purposes. The financing follows the closing of a $3.4 million financing under substantially the same terms in early May.
Arctic Star Exploration last traded at $0.085 on the TSX Venture.
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