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Arras Minerals Announces C$3 Million Financing and Welcomes New Strategic Shareholder
VANCOUVER, British Columbia, Nov. 07, 2022 (GLOBE NEWSWIRE) -- Arras Minerals Corp. (TSX-V: ARK) (“Arras” or “the Company”) is pleased to announce the intent to
About this update from Arras Minerals Corp
[{"type":"text","content":" VANCOUVER, British Columbia, Nov. 07, 2022 (GLOBE NEWSWIRE) -- 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 3rd 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 t...