Arras raises $4.0 million for exploration in Kazakhstan
Arras Minerals Corp. [ARK-TSXV], a Canadian exploration company that is exploring for critical minerals in Kazakhstan in a strategic alliance with Teck Resources Ltd. (TECK.B-TSX, TECK.A-TSX, TECK-NYSE), said it has strengthened its financial position with $4.0 million raised from warrant exercises. In a news release on February 12, 2025, the company announced that it had elected to exercise its right under certain common share purchase warrants issued on June 6, 2024, to accelerate the expiry date of the warrants. It said all 10.1 million warrants have been exercised by the holders, a move that has brought in gross proceeds of $4.05 million.
Arras shares eased 1.06% or $0.01 to 93 cents. The shares trade in a 52-week range of $1.00 and 20 cents.
Arras is advancing a portfolio of copper and gold assets in northeastern Kazakhstan. Back in December 2023, the company entered into a strategic alliance agreement with Teck that is focusing on exploration for critical minerals.
The strategic alliance with Vancouver-based Teck, which already holds a 9.9% stake in Arras, does not include the Beskauga copper-gold project. Arras said it has an option to purchase agreement in place on the Beskauga project with CopperBelt AG, a private mineral exploration company registered in Zug, Switzerland.
As an early mover in Kazakhstan following the substantial reforms to the business environment and mining law, Arras has assembled the third largest land package in the country next to Rio Tinto Group [RIO-NYSE] and Fortescue and is specifically focused on copper in the highly prospective Bozshakol-Chingiz magmatic arc. Its portfolio includes the Elemes copper-gold porphyry project, which consists of two exploration licenses and covers 531.2 square kilometres. Copper mineralization was discovered there by the Soviets in the 1950s.
Under the agreement, Teck pledged to fund generative exploration work with initial expenditures of US$5 million before December 31, 2025 across Package A and Package B, an area covering 1,736 kilometres. Following the initial generative exploration phase, Teck has the option to select up to four designated properties, covering 120 square kilometres each where Teck will fund exploration expenses of up to US$47.5 million per project enabling the major to earn up to a 75% stake in each project.
“We wish to thank shareholders for their continued support through the full exercise of warrants,’’ said Arras CEO Tim Barry. “We are currently finalizing geophysical survey and drilling contracts and expect to commence fieldwork later in April,’’ he said. “The company is well positioned to kick off its phase 2 program at Elemes and, together with the work program planned on the Arras-Teck strategic alliance, we are very excited about the many targets we will be advancing over the next eight to 12 months in Kazakhstan.’’