Arras Minerals unveils upsized $21.7 million bought deal financing
Arras Minerals Corp. [ARK-TSXV] has announced details of an upsized $21.7 million bought deal financing with net proceeds earmarked for exploration and development of the company’s properties in Kazakhstan. That is up from an earlier $15 million target.
Under an amended agreement with the underwriters, the company will now issue 15.9 million common shares priced at $1.36 per share. It will also have the right to designate subscribers to purchase up to 1.47 million common shares for up to $2.0 million as part of the underwritten offering. Additionally, the company has granted the underwriters an option to purchase up to an additional 2.4 million common shares at the issue price for gross proceeds of $3.26 million. That option can be exercised in whole or in part at any time up to 48 hours prior to closing.
Arras shares advanced on the news, rising 6.7% or 10 cents to $1.59. The shares trade in a 52-wee range of $1.59 and 53 cents.
The shares rallied recently after the company reported impressive drill results from the Berezski North Target on the Elemes Project in northeastern Kazakhstan.
The latest results include 935.9 metres of grade 0.71% copper equivalent (CuEq) (0.51 g/t gold and 19% copper) from surface, including 214.9 metres of grade 1.42% CuEq (1.01 g/t gold and 0.41% copper) starting at 162.1 metres depth in hole EL26032.
A second drill hole (EL26033) returned 52 metres of grade 1.75% CuEq (1.14 g/t gold and 0.64% copper) from 259.0 metres, within a zone grading 181.0 metres at 0.66% CuEq (0.43 g/t gold and 0.24% copper from 170 metres depth.
The Elemes Project consists of two exploration licences covering 531 square kilometres in northeastern Kazakhstan, located approximately 13 kilometres south of Ekibastuz and just 20 kilometres from Arras’s operational base. The company has said the project benefits from exceptional infrastructure, with paved highway crossing the licence, and access to 1100 KVA power lines, heavy rail, and other utilities within a 15 kilometre radius.
Property-wide soil sampling programs defined two extensive copper molybdenum geochemical anomalies: the Berezski and Aimandai Trends, both considered priority targets for follow-up exploration drilling. A Phase 1.0 drill program on the Berezski Trend in late 2024 returned high-grade porphyry/epithermal copper and gold mineralization in results announce in the first quarter of 2025. A 20,000-metre Phase 2.0 program commenced in May 2025 and was expanded to 30,000 metres in January 2026. Phase 2.0 is expected to be completed by the end of this year.
Berezski North consists of two interrelated mineralized zones, a near-surface, high-grade breccia zone, underlain by a large porphyry system. The drill holes reported Tuesday were designed to explore the shallow breccias and determine the extent of the underlying porphyry mineralization discovered in drill hole EL24005 and expanded by hole EL25027.
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