Senior secured notes due 2016 sold in deal along with warrants
By Devika Patel
Knoxville, Tenn., May 31 - Atlanta Gold Inc. said it increased a private placement of 10% senior secured gold notes to $9 million from $8 million. The deal priced on Jan. 31.
For each $1.00 invested, investors received $1.00 of notes and a warrant. The warrants are each exercisable at C$0.10 until Aug. 31, 2016. The strike price is a 100% premium to the Jan. 30 closing share price of $0.05.
Noteholders will receive an option exercisable until Aug. 31, 2016 to purchase 95 ounces of gold at $1,150 per ounce for each $100,000 invested.
Concept Capital Management Ltd. will invest $3 million, and Eric Sprott will invest $2 million.
Proceeds will be used for exploration, excavating and test processing of bulk samples, environmental permitting, engineering and development of the Atlanta Project, payment of a $2 million court award, implementation of the supplement plan of operations and for general working capital purposes.
Toronto-based Atlanta Gold is a gold exploration company.
| Issuer: | Atlanta Gold Inc.
|
| Issue: | Senior secured gold notes
|
| Amount: | $9 million
|
| Maturity: | Aug. 31, 2016
|
| Coupon: | 10%
|
| Warrants: | One warrant per $1.00 of notes
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| Warrant expiration: | Aug. 31, 2016
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| Warrant strike price: | C$0.10
|
| Investors: | Concept Capital Management Ltd. (for $3 million) and Eric Sprott (for $2 million)
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| Pricing date: | Jan. 31
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| Upsized: | May 31
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| Stock symbol: | TSX Venture: ATG
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| Stock price: | $0.05 at close Jan. 30
|
| Market capitalization: | $7.6 million
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