Calgary, Alberta (FSCwire) – ARROW Exploration Ltd. (“Arrow”) and Front Range Resources Ltd. (“FRK” or “Front Range”) (TSXV: FRK) are pleased to announce that, further to the joint news releases issued by Arrow and Front Range dated June 4, 2018, August 27, 2018 and September 17, 2018, Front Range has closed its previously announced private placement financing of units of Front Range (“Units”) for gross proceeds of US$630,000. Each Unit subscribed for under the private placement was comprised of eight and one-half (8.5) common shares of Front Range and eight and one-half (8.5) share purchase warrants. The Units are subject to a statutory four-month hold period.
FRK and Arrow entered into an arrangement agreement dated as of June 1, 2018, as amended, whereby FRK and Arrow will complete a business combination (the “Arrangement”) pursuant to a plan of arrangement under the Business Corporations Act (Alberta). At the September 21, 2018 shareholder meeting, FRK shareholders approved, among other things, the acquisition of all of the issued and outstanding securities of Arrow pursuant to the Arrangement. For a description of the contemporaneous transactions, see the August 27, 2018 news release issued by FRK and Arrow, and the August 24, 2018 Information Circular filed on FRK’s SEDAR profile.
The private placement financing is the second of two steps in Arrow’s planned financing related to the Arrangement, with Arrow’s previous subscription receipt financing for proceeds of US$17.69 Million, having closed on September 17, 2018, total gross proceeds raised of approximately US$18.32 million. For a description of the subscription receipt financing, see the September 17, 2018 news release issued by FRK and Arrow.
Front Range and Arrow are also pleased to announce that the TSXV has provided conditional approval of the Arrangement. Provided that all closing conditions are met, it is anticipated that the Arrangement will close on September 27, 2018 and that trading in resulting issuer securities will commence on or about October 5, 2018.