Arras Minerals Closes C$5.2 Million Non-Brokered Financing

VANCOUVER, BC / ACCESSWIRE / June 6, 2024 – Arras Minerals Corp. (TSXV:ARK) has completed its previously announced non-brokered private placement. The offering resulted in the issuance of 20,268,662 units at a price of C$0.26 per unit, raising approximately C$5.3 million. Teck Resources Limited acquired 1,141,000 units, bringing its stake to approximately 9.3% of Arras's common shares on a partially diluted basis.

The company plans to use the net proceeds to advance its exploration activities in northeastern Kazakhstan. This includes drilling targets at Elemes, Tay, and projects within the Arras-Teck Strategic Exploration Alliance. Arras aims to further evaluate and test copper-gold targets with this significant third summer field program.

Each unit consists of one common share and one-half of a non-transferable common share purchase warrant. Each whole warrant allows the holder to purchase an additional common share at C$0.40 for a period of three years. A portion of the offering involves related parties and falls under Multilateral Instrument 61-101, exempting the need for formal valuation and minority approval.

Shares issued under this offering are subject to a four-month hold period and U.S. resale restrictions. Finders fees were paid on a portion of this offering. The technical disclosure was overseen by Matthew Booth, Vice President of Exploration at Arras Minerals.