Company sells units at C$0.16; funds for exploration, development
By Jennifer Chiou
New York, Sept. 30 - Atlanta Gold Inc. said it raised C$335,400 in the fifth and final tranche of a non-brokered private placement of units. The deal priced with a 20% greenshoe on Aug. 18.
The company took in C$1.45 million on Aug. 27 and C$1 million on Sept. 10. It raised C$1.02 million in the third tranche on Sept. 17 and C$1.69 million in the fourth tranche.
Overall, the company is selling 34,375,000 units at C$0.16 apiece for C$5.5 million. It sold 9,062,500 units in the first tranche, 6,268,750 units in second, 6,375,000 units in the third tranche, 10,572,500 units in the fourth and, finally, 2,096,250 in the last tranche. 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), Sept. 17 (for C$1.02 million), Sept. 24 (for C$1,691,600), Sept. 30 (for C$335,400)
|
| Stock symbol: | TSX Venture: ATG
|
| Stock price: | C$0.155 at close Aug. 18
|
| Market capitalization: | C$25.45 million
|
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