The company announced that the private placement has been oversubscribed and that the second tranche is expected to close within a few days.
Shares of Arctic Star gained 33% to C$0.10 in Toronto and climbed 27% to US$0.07 on the OTC Markets in afternoon trading.
The Vancouver-based junior announced that it issued 17 million shares at C$0.05.
Under the terms of the deal, each unit consists of one common share and one warrant, which will entitle the holder to purchase additional shares of capital for C$0.08 for 24 months from the closing date.
The exploration company also granted 3.5 million stock options to its directors, employees and consultants, exercisable at C$0.08 for five years.
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