Arras Minerals Announces C$3 Million Financing and Welcomes New Strategic Shareholder
1 Teck Resources Corporate Presentation October 28, 2022
2 Observatory of Economic Complexity (OEC) – “2020 Exporters of Refined Copper”
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ARRAS MINERALS ANNOUNCES C$3 MILLION FINANCING AND
WELCOMES NEW STRATEGIC SHAREHOLDER
November 7, 2022 TSX-V: ARK
Vancouver, British Columbia – Arras Minerals Corp. (TSX-V: ARK) (“Arras” or “the Company”) is pleased
to announce the intent to complete a non-brokered private placement financing of up to 6,666,667
common shares at C$0.45 per share (the “ Placement”) for gross proceeds of up to C$3 million. Teck
Resources Limited (“Teck”) has agreed to subscribe for 5,776,000 shares for gross proceeds of
C$2,599,200 representing approximately a 9.9% interest in the Company.
Highlights
Arras strengthens its shareholder register welcoming Teck as a strategic shareholder. Teck is one
of Canada’s leading mining companies and is a significant copper producer and has one of the
best copper production growth profiles in the industry.1
The Placement will provide Arras with the necessary capital to continue to advance the Company’s
ongoing exploration activities at the Beskauga project as well as the regional projects across the
Company’s highly prospective, 3000 km2 land package in Pavlodar, Kazakhstan.
Mr. Darren Klinck, Arras President, commented,
“Arras Minerals is very pleased to welcome Teck as a strategic shareholder. We view the investment by
this leading global resource company as further confirmation and endorsement of Arras’ early-mover
strategy into Kazakhstan, a country that is rich in opportunity and importantly continues to demonstrate
strong support and incentives for mineral exploration and mine development.”
Mr. Tim Barry, Arras CEO commented,
“As a top-10 producer of copper and the 5th largest exporter of refined copper2 world-wide, Kazakhstan is
very well-placed to continue to supply the critical minerals necessary for clean energy transition. In less
than 18 months, Arras Minerals has established the 3 rd largest land package prospective for copper-gold
exploration in the country and recent drilling results from Beskauga have demonstrated globally significant
results for copper-gold which we plan to continue to follow up and expand upon in 2023.”
In connection with the Placement, Arras has agreed to grant Teck an equity participation right to maintain
its pro-rata ownership in the Company providing Teck’s interest remains above 5%.
No commissions will be paid on the Teck Placement. In certain circumstances, the Company may pay a
finders fee in cash or common shares on a portion of the non-Teck portion of the Private Placement.
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The common shares will be offered by way of prospectus exemptions in Canada and the common shares
sold in the Placement will be subject to a hold period of four months plus one day.
The closing of the Placement is expected to occur on or before November 21, 2022, subject to regulatory
approval, including the approval of the TSX Venture Exchange and certain other customary conditions
including, but not limited to, execution of subscription agreements between the Company and the
subscribers.
The proceeds of the Placement will be used to advance exploration activities at the Company’s projects
in NE Kazakhstan and for general corporate purposes.
About the Beskauga Deposit: The Beskauga deposit, is a gold-copper-silver deposit with an “Indicated”
Mineral Resource of 111.2 million tonnes grading 0.49 g/t gold, 0.30% copper, and 1.3 g/t silver for 1.75
million ounces of contained gold, 333.6 thousand tonnes of contained copper, and 4.79 million ounces of
contained silver and an “Inferred” Mineral Resource of 92.6 million tonnes grading 0.50 g/t gold, 0.24%
copper and 1.1 g/t silver for 1.49 million ounces of contained gold, 222.2 thousand tonnes of contained
copper, and 3.39 million ounces of contained silver. The constraining open pit was optimized and
calculated using a Gross Metal Value (“GMV”) cut-off of $20/tonne based on a price of $1,750/oz for gold,
$3.50/lb for copper, $22/oz for silver, and with an average recovery of 85% for copper and 74.5% for gold
and 50.0% for silver.
Based on exploration undertaken to date, the Beskauga deposit is interpreted by Arras to represent a
gold-rich porphyry copper-gold deposit that has been overprinted by high-sulfidation epithermal
mineralization, either through telescoping or due to clustering of multiple porphyry centers within the
Beskauga license that have superimposed alteration and mineralization upon earlier phases. Beskauga is
located within the highly under-explored Bozshakol-Chingiz Volcanic Arc, which hosts KAZ Minerals’
Bozshakol porphyry Cu-Au mine only 130 km west of Beskauga. Bozshakol is one of the largest copper
resources in Kazakhstan with 1.123 billion tonnes at 0.35% Cu, 0.14 g/t Au and 1.0 g/t Ag in Measured and
Indicated Resources. The mine has 30 Mtpa ore processing capacity and a remaining mine life of >40 years.
Arras has an Option to Purchase Agreement (“Option Agreement”) in place on the Beskauga Project with
CopperBelt AG (“Copperbelt”), a private mineral exploration company registered in Zug, Switzerland. The
Option to Purchase agreement was executed on January 26, 2021.
Qualified Person: The scientific and technical disclosure for the Beskauga Project included in this news
release has been prepared under supervision of and approved by Joshua Hughes MESci (Hons), Vice
President Exploration, and a full-time employee of Arras Minerals Corp., who is also a Member and
Chartered Professional Geologist (MAusIMM CP(Geo)) of the Australasian Institute of Mining and
Metallurgy, a Fellow of the Society of Economic Geologists (FSEG) and a Fellow of the Geological Society
of London (FGS). Mr. Hughes has sufficient experience, relevant to the styles of mineralization and type
of deposits under consideration and to the activity that he is undertaking, to qualify as a Qualified Person
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(“QP”) for the purposes of National Instrument 43-101 Standards of Disclosure of Mineral Projects (“NI
43-101”).
On behalf of the Board of Directors
"Tim Barry"
Tim Barry
CEO and Director
INVESTOR RELATIONS:
+1 604 687 5800
Further information can be found on the Company’s website https://www.arrasminerals.com or follow
us on LinkedIn: https://www.linkedin.com/company/arrasminerals or on twitter:
https://twitter.com/arrasminerals
About Arras Minerals Corp.
Arras is a Canadian exploration and development company advancing a portfolio of copper and gold assets
in northeastern Kazakhstan, including the Option Agreement on the Beskauga copper and gold project.
The company’s shares are listed on the TSX-V under the trading symbol “ARK”.
Cautionary Note to U.S. Investors concerning estimates of Measured, Indicated, and Inferred Resources: This press release uses
the terms “measured resources”, “indicated resources”, and “inferred resources” which are defined in, and required to be disclosed
by, NI 43-101. The Company advises U.S. investors that these terms are not recognized by the SEC. The estimation of measured,
indicated and inferred resources involves greater uncertainty as to their existence and economic feasibility than the estimation of
proven and probable reserves. U.S. investors are cautioned not to assume that measured and indicated mineral resources will be
converted into reserves. The estimation of inferred resources involves far greater uncertainty as to their existence and economic
viability than the estimation of other categories of resources. U.S. investors are cautioned not to assume that estimates of inferred
mineral resources exist, are economically minable, or will be upgraded into measured or indicated mineral resources. Under
Canadian securities laws, estimates of inferred mineral resources may not form the basis of feasibility or other economic studies.
Disclosure of “contained ounces” in a resource is permitted disclosure under Canadian regulations, however the SEC normally only
permits issuers to report mineralization that does not constitute “reserves” by SEC standards as in place tonnage and grade
without reference to unit measures. Accordingly, the information contained in this press release may not be comparable to similar
information made public by U.S. companies that are not subject NI 43-101.
Cautionary note regarding forward-looking statements: This news release contains forward-looking statements regarding future
events and Arras’ future results that are subject to the safe harbors created under the U.S. Private Securities Litigation Reform Act
of 1995, the Securities Act of 1933, as amended, and the Exchange Act, and applicable Canadian securities laws. Forward-looking
statements include, among others, statements regarding the use of net proceeds from the recent private placement, plans and
expectations of the drill program Arras is in the process of undertaking, including the expansion of the Mineral Resource, and
other aspects of the Mineral Resource estimates for the Beskauga project. These statements are based on current expectations,
estimates, forecasts, and projections about Arras’ exploration projects, the industry in which Arras operates and the beliefs and
assumptions of Arras’ management. Words such as “expects,” “anticipates,” “targets,” “goals,” “projects,” “intends,” “plans,”
“believes,” “seeks,” “estimates,” “continues,” “may,” variations of such words, and similar expressions and references to future
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periods, are intended to identify such forward-looking statements. Forward-looking statements are subject to a number of
assumptions, risks and uncertainties, many of which are beyond management’s control, including undertaking further exploration
activities, the results of such exploration activities and that such results support continued exploration activities, unexpected
variations in ore grade, types and metallurgy, volatility and level of commodity prices, the availability of sufficient future financing,
and other matters discussed under the caption “Risk Factors” in the Non-Offering Prospectus filed on the Company’s profile on
SEDAR on May 31, 2022 and in the Company’s Annual Report on Form 20-F for the fiscal year ended October 31, 2021 filed with
the U.S. Securities and Exchange Commission filed on February 17, 2022 available on www.sec.gov. Readers are cautioned that
forward-looking statements are not guarantees of future performance and that actual results or developments may differ
materially from those expressed or implied in the forward-looking statements. Any forward-looking statement made by the
Company in this release is based only on information currently available and speaks only as of the date on which it is made. The
Company undertakes no obligation to publicly update any forward-looking statement, whether written or oral, that may be made
from time to time, whether as a result of new information, future developments, or otherwise.