Offering of 5 million flow-through common shares will fund exploration
By Devika Patel
Knoxville, Tenn., April 22 – ATAC Resources Ltd. said it settled a C$3.25 million private placement of stock. The deal priced on April 19.
The company sold 5 million flow-through common shares at C$0.65 apiece. The price per share represents a 4.84% premium to the April 18 closing share price of C$0.62.
Proceeds will be used for exploration.
“All proceeds will be used to finance Phase I of the 2016 exploration program at the Rackla Gold Project and to significantly increase the scope of Phase II exploration, which will be based on favorable Phase I results,” president and chief executive officer Graham Downs said in a press release.
“This financing allows ATAC to minimize the use of its C$16 million treasury of hard-dollars (non-flow-through dollars). With approximately C$19 million now in its treasury, ATAC is well-positioned to substantially advance the newly discovered Orion target and Airstrip anomaly during the 2016 field season.”
A 6% finder's fee was paid to Secutor Capital Management Corp.
ATAC is a gold exploration company based in Vancouver, B.C.
Issuer: | ATAC Resources Ltd.
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Issue: | Flow-through common stock
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Amount: | C$3.25 million
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Shares: | 5 million
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Price: | C$0.65
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Warrants: | No
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Pricing date: | April 19
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Settlement date: | April 22
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Stock symbol: | TSX Venture: ATC
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Stock price: | C$0.62 at close April 18
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Market capitalization: | C$84.81 million
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