July 28, 2014 – Arctic Star Exploration Corp. (TSXV: ADD) (the “Company” or “Arctic Star”) announces that it has closed the second tranche of a non-brokered private placement financing (the “Offering”) it previously announced by news release dated July 9, 2014 and July 21, 2014.
The Company issued 2,860,000 flow-through units (each, a “FT Unit”) at a price of $0.14 per FT Unit for gross proceeds of $400,400. Each FT Unit consists of one flow-through common share in the capital of the Company and one-half of one non-transferable common share purchase warrant (each a “Warrant”), with one whole Warrant entitling the holder to acquire one additional non flow-through common share (each, a “Warrant Share”) at a price of $0.20 per Warrant Share until July 28, 2016.
The Company also issued 1,725,000 non-flow-through units (each, a “NFT Unit”) at a price of $0.12 per NFT Unit for gross proceeds of $207,000. Each NFT Unit consists of one common share in the capital of the Company and one-half of one Warrant, with one whole Warrant entitling the holder to acquire one Warrant Share at a price of $0.20 per Warrant Share until July 28, 2016.
The Company issued a cumulative total of 3,825,000 FT Units and 5,898,332 NFT Units for aggregate gross proceeds of $1,243,300.
The Company paid cash finders’ fees to certain finders in the aggregate amount of $3,840 and issued 48,000 warrants (the “Finders’ Warrants”) exercisable into additional common shares (“Finders’ Warrant Shares”) at a price of $0.20 per Finders’ Warrant Share until July 28, 2016.
All securities issued in the Offering will be subject to a statutory hold period expiring November 29, 2014.
The Company intends to use the proceeds from the Offering for general corporate purposes and to investigate potential new projects for the company. The Company will use the flow through funds for a new project in Canada, which the Company has yet to acquire
The Company is also pleased to announce that as a result of demand, it has arranged to sell an increased 2,000,000 NFT Units from what was previously announced, to 10,658,333 NFT Units for gross proceeds of $1,278,999.96. The remainder of the FT Units and NFT Units not closed in the second tranche announced today will be closed in a third and final tranche in the coming days.
ON BEHALF OF THE BOARD OF DIRECTORS OF ARCTIC STAR EXPLORATION CORP.
Patrick Power, President
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.