NOT FOR DISSEMINATION OR DISTRIBUTION IN THE UNITED STATES AND NOT FOR DISTRIBUTION TO UNITED STATES NEWSWIRE SERVICES.
July 5, 2012 — Vancouver, BC - ATAC Resources Ltd. (“ATAC” or “the Company”) (TSX VENTURE: ATC) is pleased to announce that it has closed the bought-deal private placement through a syndicate of underwriters led by Macquarie Capital Markets Canada Ltd., and including Raymond James Ltd., Scotia Capital Inc., RBC Dominion Securities Inc. and GMP Securities L.P., as originally announced on June 15, 2012.
The private placement consisted of the sale by the Company of 3,980,100 Flow-Through Units at a price of $3.30 per Flow-Through Unit and 886,900 Common Share Units at a price of $2.85 per Common Share Unit, for aggregate gross subscription proceeds of $15,661,995. Commissions totalling $936,117 were paid to the underwriting syndicate in connection with the private placement.
Each Flow-Through Unit consisted of one flow-through share and one-half of one flow-through share purchase warrant (each whole warrant a “Flow-Through Warrant”). Each Flow-Through Warrant entitles the holder to purchase one additional flow-through share of the Company at a price of $4.50 until January 5, 2013, provided that, in the event the volume-weighted average price of the Company’s shares is above $5.00 over a consecutive 10 day period following the expiry of the Hold Period (as defined below), the Company may give notice of an earlier expiry of the Flow-Through Warrants, in which case they would expire 10 calendar days from the giving of such notice.
Each Common Share Unit consisted of one common share and one-half of one common share purchase warrant (each whole warrant a “Warrant”). Each Warrant entitles the holder to purchase one additional common share of the Company at a price of $4.50 until January 5, 2013, subject to the same potential earlier expiry as applies to the Flow-Through Warrants.
All of the securities issued pursuant to the private placement are subject to a hold period in Canada which expires on November 6, 2012 (the “Hold Period”).
The net proceeds from the private placement will be used by the Company to continue exploration at its 100%-owned Rackla Gold Project in the Yukon, and for working capital purposes. The proceeds raised from the sale of the Flow-Through Units will be used by the Company to finance qualified Canadian exploration expenditures on its Canadian resource properties.
The securities referred to in this news release have not been, nor will they be, registered under the United States Securities Act of 1933, as amended, and may not be offered or sold within the United States or to, or for the account or benefit of, U.S. persons absent U.S. registration or an applicable exemption from the U.S. registration requirements. This news release does not constitute an offer for sale of securities for sale, nor a solicitation for offers to buy any securities. Any public offering of securities in the United States must be made by means of a prospectus containing detailed information about the company and management, as well as financial statements.
ATAC is a well-funded, Yukon-based exploration company focused on developing Canada’s only Carlin-type gold discoveries at its 100% owned, Rackla Gold Project. For additional information concerning ATAC Resources Ltd., please visit our website at www.atacresources.com.
Graham Downs, CEO
ATAC Resources Ltd.
For further information, please contact:
Vanessa Pickering, Manager, Corporate Communications
ATAC Resources Ltd.
T: 604-687-2522 ext. 60
NEITHER THE TSX VENTURE EXCHANGE NOR ITS REGULATION SERVICES PROVIDER (AS THAT TERM IS DEFINED IN THE POLICIES OF THE TSX VENTURE EXCHANGE) ACCEPTS RESPONSIBILITY FOR THE ADEQUACY OR ACCURACY OF THIS RELEASE.
This news release may contain forward looking statements based on assumptions and judgments of management regarding future events or results that may prove to be inaccurate as a result of exploration and other risk factors.View News Release in PDF