Ares Strategic Mining Closes First Tranche of Non-Brokered Private Placement Offering
Summary
Units offered under the Life Exemption will not be subject to resale restrictions for Canadian resident investors pursuant to applicable Canadian securities laws.None of the securities issued in connection with the Amended LIFE Offering will be registered under the United States Securities Act of 1933, as amended (the 1933 Act), and none of them may be offered or sold in the United States absent registration or an applicable exemption from the registration requirements of the 1933 Act. Pursuant to the terms of the Sharing Agreement, the gross proceeds payable by Sorbie for Units pursuant to the private placement (being $1.5 million) (the Posted Support) were used to acquire UK government bonds as credit support to secure the Issuers maximum potential exposure under the Sharing Agreement, with Sorbie retaining control and direction of such proceeds (including both the economic benefit and the risk resulting from fluctuations in the bond pricing and foreign exchange) until they are released back to the Issuer in accordance with the terms of the Sharing Agreement.The hedging transactions governed by the Sharing Agreement will be determined and payable in 24 monthly settlement tranches based on the volume weighted average price of the Common Shares for the 20 trading days prior to each monthly settlement date measured against a benchmark price of $0.2610 (the Benchmark Price). On each such settlement date, Sorbie will release a portion of the Posted Support determined in reference to such volume weighted average ($62,500 per month). The use of any of the words could, intend, expect, believe, will, projected, estimated and similar expressions and statements relating to matters that are not historical facts are intended to identify forward-looking information and are based on the Companys current belief or assumptions as to the outcome and timing of such future events.Various assumptions or factors are typically applied in drawing conclusions or making the forecasts or projections set out in forward-looking information, including the assumption that the Company will close the balance of LIFE Offering on the timeline anticipated, will raise the balance of the gross proceeds from the LIFE Offering and will use the proceeds of the LIFE Offering as anticipated. Although such statements are based on reasonable assumptions of the Companys management, there can be no assurance that any conclusions or forecasts will prove to be accurate.Forward-looking information involves known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements to be materially different from any future results, performance or achievements expressed or implied by the forward-looking information.