Business
Arras Minerals Closes C$7.2 Million Private Placement Financing
VANCOUVER, British Columbia, Dec. 20, 2022 (GLOBE NEWSWIRE) -- Arras Minerals Corp. (TSX-V: ARK) (“Arras” or “the Company”) is pleased to announce that it has c
About this update from Arras Minerals Corp
[{"type":"text","content":" VANCOUVER, British Columbia, Dec. 20, 2022 (GLOBE NEWSWIRE) -- Arras Minerals Corp. (TSX-V: ARK) (“Arras” or “the Company”) is pleased to announce that it has closed the previously announced non-brokered private placement that was upsized on November 21, 2022 due to strong investor demand. The Company sold an aggregate 15,938,250 common shares at C$0.45 per share (the “Placement”) for gross proceeds of C$7.17 million. In connection with the Private Placement, the Company paid finders’ fees in cash on a portion of the Private Placement in the amount of C$84,432. The common shares were 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. A portion of the Private Placement is considered a “related party transaction” within the meaning of Multilateral Instrument 61-101 – Protection of Minority Security Holders in Special Transactions (“MI 61-101”). The “related party” portion of the Private Placement is exempt from the minority approval requirement of Section 5.6 and the formal valuation requirement of Section 5.4 of MI 61-101 as the board has determined that neither the fair market value of the “related party” portion of the Private Placement nor the fair market value of the consideration for the “related party” portion of the Private Placement exceeds 25% of the Company’s market capitalization. The proceeds of the Placement will be used to advance exploration activities at the Company’s projects in Northeastern 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 ave...