Arcus Development Arranges Private Placement


Arcus Development Group Inc. will carry out a 3,333,333-unit non-brokered private placement for total proceeds of $500,000. Each unit will consist of one flow-through common share and one flow-through share purchase warrant. The price of the units will be 15 cents. The warrants will be valid for a period of 12 months from the closing of the placement and will entitle the holder to purchase one additional flow-through common share at a price of 20 cents.

Proceeds from the placement and any proceeds from the exercise of the warrants will be used to finance the company’s work programs on the Dawson gold project. Research Capital Corporation will be paid a cash commission of 8 per cent on a portion of the placement proceeds.

ATAC Resources Ltd. granted the company an option to acquire a 50-per-cent interest in the Dawson gold project. The project consists of four claim blocks covering an area of approximately 77 square kilometres adjacent to or near the Underworld Resources Inc.’s White Gold and Black Fox properties in west-central Yukon.

The company anticipates closing this placement by mid-July, 2009. The original requirement that the company complete a $1-million financing by Aug. 1, 2009, has been waived by both ATAC and the company.

The private placement and the Dawson gold option are both subject to TSX Venture Exchange acceptance.

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