VANCOUVER, B.C. – Arctic Hunter Energy Inc. (TSX-V: AHU) (“Arctic Hunter” or the “Company”) is pleased to announce that it has closed the first tranche of its recently announced private placement (see news release dated October 8, 2020). The Company issued an aggregate of 3,050,000 non-flow-through units (“NFT Units”) at a price of $0.15 per unit for aggregate gross proceeds of $457,500. Each NFT Unit consists of one (1) common share and one (1) common share purchase warrant. Each warrant entitles the holder to purchase one common share in the capital of the Company at an exercise price of $0.25 per share for a period of three (3) years from the date of issuance.
Proceeds from the sale of the NFT Units will be used by the Company for acquisition and exploration costs in connection with its 14,800-hectare Trans Canada Gold Property situated near the Dryden gold district in Northwest Ontario Canada and for legal and accounting costs and general working capital. Proceeds of the private placement that are to be allocated to exploration and acquisition costs respecting the Trans-Canada Gold Property will be held in trust until the Company has received final TSX Venture Exchange (“TSXV”) approval for the acquisition of the Trans Canada Gold Property, which is expected in the near future. Closing of the first tranche of the private placement provides the Company with the funds necessary to pay acquisition and Phase 1 exploration costs on the Trans-Canada Gold Property. Raising the funds to cover these costs was the only remaining condition to receipt of TSXV acceptance for the property acquisition, aside from completion by the TSXV of a review of the Company’s NI 43-101 technical report on the Trans-Canada Gold Property (see news release dated October 6, 2020). The technical report was previously submitted to the TSXV and the Company expects that the TSXV review will be completed shortly.
In connection with the closing of the first tranche, the Company paid a finders’ fee to Mackie Research Capital Corporation (“MRCC”) consisting of a cash fee of $18,900 (6% of the gross proceeds raised from subscribers introduced by MRCC) and 126,000 finder’s warrants (6% of the number of Units sold to subscribers introduced by MRCC). Each finder’s warrant will entitle the holder to acquire (1) one common share of the Company at a price of $0.15 per share for a period of three (3) years from the date of issuance.
All of the securities issued in connection with the closing will be subject to a four month hold period ending February 24, 2021. The Company expects to complete the balance of the financing in the near future.
Trans Canada Gold Project- The Dinorwic Gold Property
The Trans-Canada Gold Property consists of 741 non-surveyed contiguous mineral cell claims totaling 14,880 hectares located within the Kenora Mining Division of Ontario. The property is located within the Wabigoon Greenstone Belt, which also contains the Thunder Lake Gold deposit and the Goldlund Gold Deposit. The Property contains a number of large shear zones containing quartz carbonate veins, pyrite and arsenopyrite, underlain by mafic volcanics with felsic volcanics in the south. There is a large regional scale iron carbonate alteration within the property, which is considered to be similar to that of the Red Lake Mining Camp. The regional scale Carbonate alteration within the property associated with shear zones within iron-tholeiite are prime targets for gold exploration.
A number of gold exploration targets have been identified within the property based on their association with regional alteration, known gold showings, shear zones, complex patterns and offsets in the regional magnetic map as well as spatial association with regional structures.
Colin Bowdidge, Ph.D., P.Geo., a Qualified Person as defined by National Instrument 43-101, has reviewed and approved of the technical information disclosed in the news release.
ABOUT ARCTIC HUNTER – GOLD MINERAL EXPLORATION /OIL AND GAS PRODUCTION
The Company is a Canadian Gold and Mineral exploration and Oil & Gas Resource Development Company, that is currently focused in developing its’ District Scale Gold exploration project in Ontario, and increasing its production capabilities, obtaining potential future oil production revenues. The Company identifies, acquires and finances the acquisition of gold exploration properties and the ongoing development of mining and oil and gas assets primarily situated in Canada, a time-honored safe mineral exploration jurisdiction. The Company is currently reviewing a number of District Scale gold mineral exploration property opportunities, and identifying low risk exploration opportunities through selective acquisitions and development of mining exploration assets situated in these favorable resource jurisdictions. The Company has qualified Senior exploration management and Geological Mining teams of professionals, seasoned in exploration 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 property acquisitions and responsible exploration and development of mining and petroleum and natural gas resource assets.
FOR FURTHER INFORMATION, PLEASE CONTACT:
Tim Coupland, President and CEO
Arctic Hunter Energy Inc.
Tel: (604) 681-3131
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.