Arctic Hunter Completes Further Negotiations and Proceeds to a Definitive Agreement on the Rebeico Gold/ Copper Project Situated in Mexico and Proceeds with Its CDN $1.0 Million Dollar 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
March 20TH, 2017 TSX-V Trading Symbol: AHU
______________________________________________________________________________________
ARCTIC HUNTER COMPLETES FURTHER NEGOTIATIONS AND PROCEEDS TO A DEFINITIVE AGREEMENT ON THE REBEICO GOLD/ COPPER PROJECT SITUATED IN MEXICO AND PROCEEDS WITH ITS CDN $1.0 MILLION DOLLAR NON-BROKERED PRIVATE PLACEMENT
____________________________________________________________________________________
VANCOUVER, B.C. - Arctic Hunter Energy Inc. (TSX-V: AHU) (“Arctic Hunter” or the “Company”) is pleased to announce that it has completed further negotiations and completed additional due diligence after completing its site visit to the Rebeico Gold-Copper Project situated in Sonora, Mexico. The Company will now proceed to a definitive agreement. The Rebeico Gold - Copper Project is located within the heart of the prolific Sierra Madre Gold belt of northern Mexico and is easily accessed by paved highway from the City of Hermosillo, Mexico. The Rebeico Gold-Copper Property is a former small-scale underground producer of gold and copper in this prolific mining region. Recently completed work by the property vendor YQ Gold, includes detailed geological mapping, detailed rock sampling and soil geochemical surveys. This comprehensive work has resulted in the expansion of previously known gold and copper mineralized zones. The main Rebeico vein system has been traced for more than 1 km on surface, with vein widths ranging from 0.40 meters to over 1.9 meters. Historical mining has occurred on the property with only a small portion of the historical mining occurring on the identified vein system. The Rebeico vein system remains open at depth below underground development levels and to date is untested by drilling. YQ Gold has also identified a large approximately 400-meter by 600-meter gold bearing Breccia Zone that is open in all directions and remains untested by drilling. The final option and definitive acquisition agreement is subject to TSX Venture Exchange approval.
ARCTIC HUNTER PROCEEDS WITH A $1.0 CDN MILLION DOLLAR NON-BROKERED PRIVATE PLACEMENT
The Company has previously announced (Dec 8, 2016), (Feb 8th, 2017) a non-brokered private placement financing of 10,000,000 units (the “Units”) at a price of CDN $0.10 per Unit to raise gross proceeds of up to CDN $1,000,000 (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 may increase the size of the Offering by up to 25% prior to closing, in which case the Offering will be for up to a maximum of 12,500,000 Units and gross proceeds of $1,250,000.
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 ($150,000), any further due diligence, acquisition and travel costs associated with the Rebeico Gold-Copper property, geological consulting, funding drilling exploration programs ($300,000), logistical, technical, field crews ($100,000), geochemical assaying ($50,000), option payments ($275,000) and the review of aproduction and exploration opportunity that had been previously identified in Mexico ($125,000). Funds may be re-allocated where necessary for sound business reasons and budgetary purposes.
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 February 6, 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 CDN $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 an Oil & Gas and Mining teams of professionals seasoned in production, field exploration and drilling. The Company has the resources and necessary manpower in place to develop its natural resource 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]
or
Ted Burylo, Director Arctic Hunter Energy Inc.
Tel: (604) 764-9178
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.