April 22, 2016 – Vancouver, BC – ATAC Resources Ltd. (TSX-V: ATC) (“ATAC” or the “Company”) announces that it has closed the non-brokered private placement announced on April 19, 2016, consisting of the sale of 5,000,000 flow-through common shares at $0.65 per share, for gross proceeds of $3,250,000.
“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,” said Graham Downs, President and CEO. “This financing allows ATAC to minimize the use of its $16 million treasury of hard-dollars (non-flow-through dollars). With approximately $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.”
2016 Phase I Exploration Objectives:
- Approximately thirty rotary air blast (“RAB”) holes will be drilled to follow up on the 2015 discovery hole (ARB-15-026) at the Orion target which returned 3.79 g/t gold over 47.24 m*. This hole bottomed in gold mineralization with the last interval grading 2.56 g/t gold over 1.52 m;
- Permitting of a 69 km tote road to the Rau Trend and Tiger Gold Deposit will commence in spring 2016;
- Soil sample coverage around the open-ended, 10 km2 Airstrip gold anomaly will be significantly expanded and all high priority gold anomalies will receive detailed prospecting, trenching and mapping; and,
- Results and time permitting, RAB drilling will be carried out at the Airstrip anomaly.
* RAB drill hole intersections are drilled thicknesses and true widths are unknown.
The placement proceeds of $3,250,000 will be used to incur Canadian Exploration Expenditures as defined in the Income Tax Act (Canada). All expenditures will be incurred by December 31, 2016. All shares issued under the placement will be subject to a four month hold period in Canada expiring on August 23, 2016.
The securities offered have not been registered under the U.S. Securities Act of 1933, as amended, and may not be offered or sold in the United States absent registration or an applicable exemption from the registration requirements. This press release shall not constitute an offer to sell or the solicitation of an offer to buy nor shall there be any sale of the securities in any State in which such offer, solicitation or sale would be unlawful.
The technical information in this news release has been approved by Julia Lane, P.Geo., VP Exploration for ATAC and a qualified person for the purposes of National Instrument 43-101.
ATAC is a Yukon-based exploration company focused on developing Canada’s only Carlin-type gold district at its 100% owned Rackla Gold Project. Recent work on the 1,700 km2 project has resulted in a positive Preliminary Economic Assessment for the Tiger Gold Deposit, drilling of multiple high-grade Carlin-type gold zones and the identification of numerous early-stage gold exploration targets. The Rackla Gold Project has no underlying royalties or third-party interests. ATAC is well financed with approximately $19 million in its treasury.
On behalf of the Board of Directors
of ATAC Resources Ltd.
Graham Downs, President and CEO
For further information, please contact:
Vanessa Pickering, Manager, Corporate Communications
ATAC Resources Ltd.
T: 604-687-2522 ext. 260
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