ATAC Resources Ltd. Closes $8.3 Million Financing Involving Barrick Gold Corporation
VANCOUVER, BC--(Marketwired - May 04, 2017) -
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ATAC Resources Ltd. (TSX VENTURE: ATC) ("ATAC") is pleased to announce that the flow-through private placement announced on April 10, 2017 has closed. A total of 16,684,800 flow-through common shares were sold at a price of $0.50, for gross proceeds of $8,342,400.
The flow-through shares formed part of a donation arrangement structured by PearTree Securities Inc. through which Barrick Gold Corp. ("Barrick") became the ultimate owner of the ATAC shares. Barrick now owns approximately 19.9% of the issued and outstanding shares in the capital of ATAC on a non-diluted basis.
Proceeds from the sale of the flow-through shares will be used by ATAC to incur eligible Canadian exploration expenses at the Rackla Gold Property, in the Yukon.
The flow-through shares are subject to a hold period expiring on September 4, 2017. Following the completion of the placement, the issued and outstanding share capital of ATAC is 139,556,877 shares. No finder's fees were paid in respect of the placement.
As part of the placement, Barrick was granted the right to maintain its pro-rata ownership percentage in ATAC during future financings. This right will entitle, but not obligate, Barrick to participate in any future equity financings by ATAC to the extent necessary for Barrick to maintain a 19.9% equity ownership interest in the issued and outstanding common shares of ATAC.
About ATAC
ATAC is a Yukon-based exploration company focused on developing Canada's only Carlin-type gold district at the Rackla Gold Property. 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. ATAC and Barrick recently partnered to explore the Rackla Gold Property's Orion Project, with Barrick having the option to earn up to 70% of Orion by spending $55 million in exploration. ATAC is well-financed with approximately $22 million in its treasury and will conduct a $10 million, ~15,000 m diamond and RAB drilling exploration program at the Osiris and Rau projects in 2017 (which are not subject to Barrick's earn-in right), while concurrently working with Barrick to advance the Orion Project.
On behalf of Management and the Board of Directors
of ATAC Resources Ltd.
Graham Downs, President and CEO
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 NEWS RELEASE.
Contact
For further information, please contact:
Vanessa Pickering
Manager, Corporate Communications
ATAC Resources Ltd.
T: 604-687-2522 ext. 260
info@atacresources.com
