Arctic Hunter Allows Standstill Agreement to Expire on the Rebeico Gold/ Copper Project Situated in Mexico - Discussions with Vendors Continue - Company Proceeds with a CDN $50,000 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
September 18th, 2017 TSX-V Trading Symbol: AHU
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ARCTIC HUNTER ALLOWS STANDSTILL AGREEMENT TO EXPIRE ON THE REBEICO GOLD/ COPPER PROJECT SITUATED IN MEXICO - DISCUSSIONS WITH VENDORS CONTINUE - COMPANY PROCEEDS WITH A CDN $50,000 NON-BROKERED PRIVATE PLACEMENT
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VANCOUVER, B.C. – Arctic Hunter Energy Inc. (TSX-V: AHU) (“Arctic Hunter” or the “Company”) announces that further to its news release dated April 5, 2017, and May 19, 2017, that the Company has allowed a standstill agreement (the “Standstill Agreement”) with respect to its option agreement dated April 3, 2017 (the “Option Agreement”) to acquire up to a 100% interest in the Rebeico Gold-Copper Project situated in Sonora, Mexico (“Rebeico Gold Property”) to expire. The parties had agreed to enter into the Standstill Agreement to provide additional time for the parties to complete a National Instrument NI 43-101 compliant technical report, which was recently completed, and resolve issues regarding a title opinion and claim ownership as required by regulatory authorities, with respect to the Rebeico Gold Property.
Under the terms of the Standstill Agreement, the Option Agreement was terminated and the optionor and vendors of the Rebeico Gold Property agreed that they would not enter into any agreement that would have the effect of granting any party (other than the Company) the right to acquire any interest of any kind in the Rebeico Gold Property for a period of 90 days following the execution of the Standstill Agreement. As a result of the termination of the Standstill Agreement, the option remains terminated. The Company is continuing negotiations with its Mexican partners, and believes that with a quick resolution, that the execution of an amended option agreement on terms similar to the Option Agreement that was submitted to the TSX Venture Exchange for approval will be forthcoming.
ARCTIC HUNTER PROCEEDS WITH A $50,000 CDN DOLLAR NON-BROKERED PRIVATE PLACEMENT
The Company is pleased to announce a non-brokered private placement financing of 500,000 units (the “Units”) at a price of CDN $0.10 per Unit to raise gross proceeds of up to CDN $50,000 (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 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 September 15, 2017, 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.
ABOUT ARCTIC HUNTER ENERGY
The Company is a Canadian Oil & Gas exploration and Mining resource development Company that identifies, acquires and finances the acquisition, exploration and development of mining and oil and gas assets primarily situated in Western Canada and North America. The Company is currently a junior heavy oil producer in the greater Lloydminster area of Alberta & Saskatchewan. The Company is continually reviewing future production and exploration opportunities, through selective property acquisitions and identifying low risk exploration drilling activities situated in Canada, the United States, Mexico and abroad.
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.