AUS
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Key Highlights:
- Ares closes second tranche of its LIFE Offering, raising $137,730.60 through 765,170 Units.
- Each Unit consists of one common share and a warrant, exercisable at $0.26 for two years.
- Proceeds will support strategic initiatives as outlined in the LIFE Offering Document.
Ares Strategic Mining Inc. (CNSX: ARS) (“Ares” or the “Company”) has successfully closed the second tranche of its previously announced offering of units, issuing a total of 765,170 Units at a price of $0.18 per Unit. This transaction has generated aggregate gross proceeds of $137,730.60, marking a significant step forward in the Company’s financial strategy.
On August 22, 2024, Ares launched a non-brokered private placement offering known as the LIFE Offering, designed to leverage the listed issuer financing exemption under Part 5A of National Instrument 45-106 – Prospectus Exemptions (the “LIFE Exemption”). This offering enables the Company to secure capital without the extensive disclosure typically required in a public offering, allowing for a more streamlined financing process.
Each Unit in the LIFE Offering consists of one common share of Ares and one non-transferable Common Share purchase warrant (each a “Warrant”). The Warrants are exercisable into one Common Share at a price of $0.26 per Warrant Share for a period of two years from the closing date. An interesting aspect of the offering is the Acceleration Clause: if the 10-day volume-weighted average trading price of the Common Shares reaches or exceeds $0.40, Ares has the discretion to accelerate the expiry date of the Warrants to the 30th day following the announcement via a news release. This flexibility allows Ares to respond strategically to market conditions.
Units offered under the LIFE Exemption will not be subject to resale restrictions for Canadian resident investors, in accordance with applicable Canadian securities laws. This provision enhances the attractiveness of the offering, potentially increasing investor interest and liquidity for the shares.
It’s crucial to note that none of the securities issued under the LIFE Offering will be registered under the United States Securities Act of 1933, as amended (the “1933 Act”). This means that the securities cannot be offered or sold in the United States without proper registration or an applicable exemption. Ares has made it clear that this announcement does not constitute an offer to sell or a solicitation of an offer to buy, nor shall there be any sale of the securities in any state where such actions would be unlawful.
The proceeds from the LIFE Offering are intended for specific uses as outlined in the LIFE Offering Document dated September 4, 2024. These details can be found on Ares’ profile at www.sedarplus.com and on the Company’s website (www.aresmining.com). By specifying the intended use of funds, Ares aims to provide transparency to its investors regarding how the capital will support its strategic initiatives.
The successful closing of this second tranche positions Ares Strategic Mining to further its operational and financial objectives. With additional capital secured, the Company is well-equipped to pursue its strategic goals and continue its growth trajectory in the mining sector.
