Company raising cash for exploration, development, permitting in Idaho
By Devika Patel
Knoxville, Tenn., Sept. 10 - Atlanta Gold Inc. said it raised C$1 million in the second tranche of a C$5.5 million non-brokered private placement of units. The deal priced with a 20% greenshoe on Aug. 18 and the company took in C$1.45 million on Aug. 27. It expects to complete the balance by the end of September.
The company is selling 34,375,000 units at C$0.16 apiece. It sold 9,062,500 units in the first tranche and 6,268,750 units in this one. Each unit consists of one common share and one half-share warrant.
Each whole warrant is exercisable at C$0.25 for two years. The strike price reflects a 38.89% premium to C$0.18, the Aug. 17 closing share price.
Insiders, including Sprott Asset Management LP, are participating.
Proceeds will be used for exploration, development and permitting expenditures on the company's Atlanta gold property in Idaho and for working capital purposes.
Toronto-based Atlanta Gold is a gold exploration company.
| Issuer: | Atlanta Gold Inc.
|
| Issue: | Units of one common share and one half-share warrant
|
| Amount: | C$5.5 million
|
| Greenshoe: | 20%
|
| Units: | 34,375,000
|
| Price: | C$0.16
|
| Warrants: | One half-share warrant per unit
|
| Warrant expiration: | Two years
|
| Warrant strike price: | C$0.25
|
| Agent: | Non-brokered
|
| Investor: | Sprott Asset Management LP
|
| Pricing date: | Aug. 18
|
| Settlement date: | Aug. 27 (for C$1.45 million), Sept. 10 (for C$1,003,000)
|
| Stock symbol: | TSX Venture: ATG
|
| Stock price: | C$0.155 at close Aug. 18
|
| Market capitalization: | C$21.33 million
|
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