Diamond explorer Arctic Star Exploration Corp (CVE:ADD) (OTCMKTS:ASDZF) is set to bring in up to C$1.3 million gross through a private placing. The funds raised will be used for general working capital, to explore existing properties and potential future acquisitions, the company told investors.
The firm will issue units at five Canadian cents each on a 1:5 post-consolidated basis, it said.
Each unit consists of one share and one share purchase warrant, with each whole warrant exercisable into one share for 15 Canadian cents for two years from closing.
Last month, the group revealed that its board of directors had approved a consolidation of its shares on the basis of five pre-consolidated shares for one post consolidated share, subject to TSX Venture Exchange approval.
Arctic Star owns 100% of the Timantti Diamond Project in Kuusamo, Finland.
In August, the firm revealed it had also discovered promising kimberlite signatures in a ground geophysical survey of its second Stein diamond project in Nunavut, the most northerly territory of Canada.
A magnetic survey of the 1,065 square kilometer area on the Southern Boothia Peninsula outlined a series of possible targets with kimberlite-like signatures, it had said.
In fact, the project presented all three of the magnetic signatures frequently representing the potentially diamond-containing rock.
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