Arctic Hunter Announces $250,000 Non-Brokered Private Placement
ARCTIC HUNTER ENERGY INC.
Suite 1610 - 675 West Hastings Street · Vancouver · British Columbia · V6B 1N2 Telephone: (604) 681-3131
NEWS RELEASE
January 8, 2018 TSX-V Trading Symbol: AHU
______________________________________________________________________________________
ARCTIC HUNTER ANNOUNCES $250,000 NON-BROKERED PRIVATE PLACEMENT ____________________________________________________________________________________
VANCOUVER, B.C. – Arctic Hunter Energy Inc. (TSX-V: AHU) (“Arctic Hunter” or the “Company”) announces a non-brokered private placement financing of 2,500,000 units (the “Units”) at a price of CDN $0.10 per Unit to raise gross proceeds of up to CDN $250,000 (the “Offering”). Each Unit will consist of one (1) common share and one (1) common share purchase warrant, each warrant exercisable at a price of $0.15 per share for a period of two (2) years from the date of issuance. The private placement is subject to approval from the TSX Venture Exchange and all of the securities issued pursuant to the private placement will be subject to a four month hold period from the date of issue in accordance with applicable securities laws.
The Company has agreed to pay a finders’ fee to arm’s length parties for services rendered in respect of the Offering. The finder’s fee will consist of a cash fee equal to 8% of the gross proceeds of the Offering and finder’s warrants equal in number to 8% of the units sold under the Offering. Each finder’s warrant will entitle the holder to acquire one common share of the Company at a price of $0.15 per share for a period of two (2) years from the date of issuance.
The Company intends to use the proceeds of the Offering for any costs associated with the completion of the San Javier Mill flotation plant, acquisition of associated assets, metallurgical testing, final completion of corporate registration at the Foreign Investment Registrar, final registration of the Company before the Mining Directorate in Mexico City, and any outstanding legal, accounting costs and general working capital.
In addition to other prospectus exemptions commonly relied on in private placements, the Offering will be available to existing shareholders of the Company who, as of the close of business on January 5, 2018, held common shares of the Company (and who continue to hold such common shares as of the closing date), pursuant to the prospectus exemption set out in BC Instrument 45-534 - Exemption From Prospectus Requirement for Certain Trades to Existing Security Holders and in similar instruments in other jurisdictions in Canada (the “Existing Shareholder Exemption”). The Existing Shareholder Exemption limits a shareholder to a maximum investment of CAD$15,000 in a 12-month period unless the shareholder has obtained advice regarding the suitability of the investment and, if the shareholder is resident in a jurisdiction of Canada, that advice has been obtained from a person that is registered as an investment dealer in the jurisdiction. If the Company receives subscriptions from investors relying on the Existing Shareholder Exemption exceeding the maximum Offering, the Company may adjust the subscriptions received on a pro-rata basis.
The Company will also make the Offering available to certain subscribers pursuant to BC Instrument 45-536 - Exemption From Prospectus Requirement for Certain Distributions Through an Investment Dealer (the “Investment Dealer Exemption”). In accordance with the requirements of the Investment Dealer Exemption, the Company confirms that there is no material fact or material change about the Company that has not been generally disclosed.
THE SAN JAVIER MILL - SONORA STATE, MEXICO
The Company has paid the sum of USD $250,000 and has successfully acquired a 30% interest in Real de Rebeico Gold S.A. de C.V. (“Rebeico Gold”), which owns an interest in a State owned 100 ton per day flotation mill situated near the city of Hermosillo in Sonora State, Mexico. The formal option agreement with Rebeico Gold of Sonora, Mexico allows Arctic Hunter to earn the initial 30% interest for USD $250,000 (earned and vested), and an additional 20% interest (for up to a 50% interest) in Rebeico Gold for an additional USD $250,000. Rebeico Gold holds the right to operate the strategically located San Javier Mill and the right to receive its pro-rata production proceeds derived therefrom pursuant to an assignment agreement between Rebeico and Exlporacion y Desarollo del Desierto, S.A de C.V. (“EDDSA”) dated April 24, 2017. EDDSA holds the operating rights and the right to receive all proceeds from the San Javier Mill, and the right to conduct ancillary activities on the project site pursuant to a 10 year lease agreement between EDDSA and the state of Sonora, Mexico, dated February 24, 2015. The San Javier Mill Project site is located within the heart of the prolific Sierra Madre Gold belt and mining district of northern Mexico and is easily accessed by paved highway from the City of Hermosillo, Mexico. The San Javier Mill is a former working and operational State owned flotation mill that is surrounded by a region that has had widespread historical mining, dating back from colonial times through to the 21st century. The Mill formerly serviced many of the working gold, copper and silver mineral concessions and mines located in this mining region in the past.
ABOUT ARCTIC HUNTER – OIL AND GAS PRODUCTION & MINING PRODUCTION
The Company is a Canadian Oil & Gas exploration and mining resource development Company that is now focused in developing its’ production capabilities, obtaining potential future production revenues, discovering and advancing high grade gold, silver and copper deposits and mining concessions situated within this large mining district in Sonora, Mexico. The Company has now successfully acquired a 30% interest in Rebeico Gold of Sonora, Mexico, and has been granted the option to earn up to a 50% interest in Rebeico Gold. Rebeico Gold holds the right to operate the San Javier Mill, strategically located in the Sierra Madre Gold Belt, and the right to receive production proceeds derived therefrom pursuant to an assignment agreement dated April 24, 2017 between Rebeico Gold and Exploracion y Desarollo del Desierto, S.A. de C.V (“EDDSA”). The Company is now strategically positioned, to identify and capture all potential milling and direct-ship mining opportunities situated in the region. The Company identifies, acquires and finances the acquisition, exploration and development of mining and oil and gas assets primarily situated in Western Canada, the United States and Mexico. The Company is continually reviewing future mining production and exploration opportunities, by identifying low risk exploration through selective acquisitions and development of mining, petroleum and natural gas resource assets situated in these favorable resource jurisdictions.
The Company has qualified management and has Oil & Gas and Mining teams of professionals seasoned in production, field exploration and drilling. The Company has the necessary manpower in place to develop its natural resource properties and manage its production properties. The Company is committed to minimizing risk through the selective acquisition, exploration and development of petroleum and natural gas resource and mining assets.
FOR FURTHER INFORMATION, PLEASE CONTACT:
Tim Coupland, President and CEO Arctic Hunter Energy Inc.
Tel: (604) 681-3131 [email protected]
Neither the TSX Venture Exchange nor its Regulation Services Provider, (as the term is defined in the Policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.