Arctic Star Exploration Closes $1.0 Million Financing

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.

FULL DISCLOSURE: Arctic Star Exploration is a client of Canacom Group, the parent company of The Deep Dive. The author has been compensated to cover Arctic Star Exploration on The Deep Dive, with The Deep Dive having full editorial control. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security.

Leave a Reply