Arctic Star Announces Helicopter Borne Magnetic and Frequency Domain "Resolve" EM Survey and Non-Brokered Private Placement
Vancouver, British Columbia – TheNewswire - September 10, 2021 – Arctic Star Exploration Corp. (“Arctic Star” or the “Company”) (TSXV:ADD) (Frankfurt:82A1) (WKN:A2DFY5) is pleased to announce that Geophysical crews are mobilizing to the Diagras property to fly the entire project with a Helicopter borne magnetic and Frequency domain “Resolve” EM survey at 75m linespacing.
The entire survey will be approximately 6,000 line kilometres. The work will give our exploration team a coherent data set to explore for previously undiscovered kimberlites. The Resolve system was designed in particular to detect Lac de Gras kimberlite derived EM responses. Our team will also utilize recently derived filters that highlight magnetic remanence, again a property that many of the Lac de Gras kimberlites exhibit, unique when contrasted against the background country rocks. The survey also has the added benefit of meeting the expenditure commitments required to hold the mineral claims that make up the Dia Gras Project.
In conjunction to this, the Company is also announcing a non-brokered private placement (the “Private Placement”) of 4,000,000 units (the “Units”) at a price of $0.15 per Unit, for gross proceeds of $600,000. Each Unit will be comprised 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 will entitle the holder to purchase one additional Share in the capital of the Company (each, a “Warrant Share”) for a period of 18 months from the closing date at an exercise price of $0.20.
The warrants contain an accelerated option clause that states that if the shares of ADD close at or above $0.35 for 3 consecutive trading days on the TSX.V, then the warrant must be exercised within a 60 day period by the warrant holder, or failing which, the warrant shall expire as null and void.
All securities will be subject to a four-month hold period from the closing date. The Private Placement is subject to TSX Venture Exchange (“TSXV”) approval.
The Company intends to use the proceeds from the Private Placement for the Helicopter borne magnetic and Frequency domain “Resolve” EM survey on the Diagras Diamond Project.
ON BEHALF OF THE BOARD OF DIRECTORS OF
ARCTIC STAR EXPLORATION CORP.
Patrick Power, President & CEO
+1 (604) 218-8772
This news release contains "forward-looking statements" including but not limited to statements with respect to Arctic Star’s plans, the private placement and the use of proceeds. Forward-looking statements, while based on management's best estimates and assumptions, are subject to risks and uncertainties that may cause actual results to be materially different from those expressed or implied by such forward-looking statements, including but not limited to: risks related to the completion of our planned private placement and our plan to use all or some portion of the proceeds for exploration on the Diagras Diamond Project. There can be no assurance that such statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Factors that could affect our plans include the possibility that we can’t get TSXV approval or we are unable to raise all of the funds we are seeking to raise, in which event we may require all funds raised, if any, to be used for working capital rather than for exploration on the Diagras Diamond Project; and our proposed use of proceeds is subject to receipt of TSXV approval. Accordingly, readers should not place undue reliance on forward-looking statements. Arctic Star undertakes no obligation or responsibility to update forward-looking statements, except as required by law.
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.