Arcus Development Group (ADG-V) Closes PP With Goldcorp (G-T)
Oct 25, '16 - NR
Arcus Development Group is pleased to announce that the concurrent non-brokered flow-through and non-flow-through private placements announced on October 24, 2016 have closed. A total of 12,610,916 flow-through units were sold at a price of $0.10 per unit for gross proceeds of $1,261,092. A total of 1,789,084 non-flow-through units were sold at a price of $0.077 per unit for gross proceeds of $137,759. Aggregate proceeds from the sale of all units were $1,398,851.
Both the flow-through and the non-flow-through units were comprised of one Arcus common share and one-half of one transferrable share purchase warrant. Each full warrant entitles the holder to purchase one non-flow-through share at a price of $0.20 per share at any time on or before October 24, 2018, unless otherwise extended in accordance with the warrant terms.
The flow-through units formed part of a donation arrangement structured by Peartree Securities Inc. through which Goldcorp Inc. ("Goldcorp") became the ultimate holder of the flow-through units. The non-flow-through units were purchased directly from Arcus by Goldcorp. Goldcorp now owns approximately 19.9% of the issued and outstanding shares of Arcus on a non-diluted basis.
Proceeds from the sale of the flow-through units will be used by Arcus to incur eligible Canadian exploration expenses at its wholly-owned Dan Man property, located immediately north and adjacent to the Goldcorp Coffee property in the Yukon. Proceeds from the sale of the non-flow-thought units will be used by Arcus as general working capital.
The flow-through units, the non-flow-through units and all underlying Arcus securities are subject to a hold period expiring on February 25, 2017. Following the completion of the placements, the issued and outstanding share capital of Arcus was 72,178,065 shares. No finder's fees were paid in respect of the placements.
As part of the placements, Goldcorp was granted the right to maintain its pro-rata ownership percentage in Arcus during future financings. This right will entitle, but not obligate Goldcorp to participate in any future equity financings by Arcus to the extent necessary for Goldcorp to maintain a 19.9% equity ownership interest in the issued and outstanding common shares of Arcus. Goldcorp's right to participate in future financings will terminate if its equity interest falls below 7.5% of the issued and outstanding common shares of Arcus. Goldcorp will also have the right to match non-equity financing and tolling arrangements related to future exploration or development on the Dan Man property.
Arcus is a mineral exploration company listed on the TSX Venture Exchange and holds a 100% interest in four mineral properties located in the White Gold District of Yukon Territory. The key Arcus projects are the Dan Man and the Touleary properties. For additional information please visit the Arcus website at www.arcusdevelopmentgroup.com.
On behalf of Arcus Development Group Inc.
Ian J. Talbot, President and CEO
http://www.sedar.com.
Arcus Development Group Inc.
Ian J. Talbot
President & CEO
(604) 688-2578
(604) 687-2522
italbot@telus.net
www.arcusdevelopmentgroup.com
Arcus Development Group Inc.
Grant Longhurst
Corporate Communications
(604) 688-2578
(604) 506-2445
grant@highpci.com
www.arcusdevelopmentgroup.com |
