VANCOUVER, BRITISH COLUMBIA--(Marketwired - Oct. 25, 2016) -
NOT FOR DISTRIBUTION TO U.S. NEWSWIRE SERVICES OR FOR RELEASE, PUBLICATION, DISTRIBUTION OR DISSEMINATION DIRECTLY, OR INDIRECTLY, IN WHOLE OR IN PART, IN OR INTO THE UNITED STATES
Arcus Development Group Inc. (TSX VENTURE:ADG) ("Arcus") 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
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
CAUTIONARY NOTE: This news release contains certain forward-looking information and forward-looking statements within the meaning of applicable securities legislation (collectively "forward-looking statements"). The use of any of the words "will", "will be", "will have", "is expected to" and similar expressions are intended to identify forward-looking statements. These statements involve known and unknown risks, uncertainties and other factors that may cause actual results or events to differ materially from those anticipated in such forward-looking statements. Such forward-looking statements should not be unduly relied upon. Important factors that could cause actual results to differ materially from the Arcus Development Group Inc.'s expectations are the risks detailed herein and from time to time in the filings made by Arcus Development Group Inc. with securities regulators. Those filings can be found on the Internet at www.sedar.com.