Atco Mining Inc. Closes Private Placement for $894,500
Atco Mining Inc. (the "Company" or "Atco") (CSE: ATCM; OTC: ATMGF; Frankfurt: QP9) is pleased to announce that it has closed a first tranche of its non-brokered private placement (the "Offering") and has issued 6,200,000 flow-through units (each, a "FT Unit") at a price of $0.0575 per FT Unit and 10,760,000 non-flow-through units (each, a "NFT Unit") at a price of $0.05 per NFT Unit (together, the "Units") for gross proceeds of $894,500. Each Unit consists of one common share of the Company (each, a "Share") and one transferable common share purchase warrant (each, a "Warrant"), entitling the holder thereof to purchase one additional Share at a price of $0.15 until March 18, 2026. The Company intends to use the net proceeds raised from the Offering for exploration expenses in respect of the Company's existing exploration projects and for general working capital purposes.
In connection with closing of the Offering, the Company paid finder's fees totaling $4,790.00 and issued 94,000 Warrants to certain arms-length brokerage firms. All securities issued in connection with the private placement are subject to a statutory hold period until July 19, 2024 under applicable Canadian securities laws, in addition to such other restrictions as may apply under applicable securities laws of jurisdictions outside Canada.
Etienne Moshevich, an insider of the Company, through Transcend Capital Inc., a holding company controlled by Mr. Moshevich, subscribed for $218,000 or 4,360,000 NFT Units. Participation in the Offering by an insider of the Company constitutes a "related party transaction" within the meaning of Multilateral Instrument 61-101 - Protection of Minority Security Holders in Special Transactions ("MI 61-101"). The issuance of securities to Transcend Capital Inc. is exempt from the valuation requirement of MI 61-101 by virtue of the exemption contained in section 5.5(b) as the Shares are not listed on a specified market and from the minority shareholder approval requirements of MI 61-101 by virtue of the exemption contained in section 5.7(a) of MI 61-101, in that the fair market value of the consideration paid for the securities issued to Transcend Capital Inc. does not exceed twenty-five percent of the Company's market capitalization.
"I want to thank our shareholders for their support and belief in our company," said Etienne Moshevich, CEO of the Company. "Atco has never seen a more exciting time with a drill program currently underway. This cash infusion not only cements our ability to continue our program but gives us the ability to extend it. We are looking forward to updating our investors with our progress over the coming weeks."
The Company also announces that Dawson Brisco has resigned from the Board of Directors. "I was elected to the Board of Atco to assist with the early development of the Company and its hydrogen energy strategy, and I am very proud to have helped in that regard," stated Mr. Brisco. "However, due to an increasing level of professional commitments, I find myself unable to continue serving on the Board. I want to thank my fellow directors and wish Atco much success as it advances its newly identified uranium prospects." The Company would like to thank Mr. Brisco for all his efforts and wish him the very best with his future endeavors.
About Atco Mining (CSE: ATCM):
Atco is a junior exploration mining company focused on exploring for green energy metals throughout Canada. Atco is exploring for uranium in the Athabasca Basin as well as salt opportunities in Western Newfoundland. Investors are encouraged to visit the company's website here: www.atcomining.com
For further information contact:
Email: info@atcomining.com
Telephone: (604) 681-0084
www.atcomining.com
Neither the Canadian Securities Exchange nor its Regulation Services Provider (as that term is defined in the policies of the Canadian Securities Exchange) accepts responsibility for the adequacy or accuracy of this news release. The Canadian Securities Exchange has not in any way approved nor disapproved the contents of this news release.
FORWARD LOOKING STATEMENTS:
Certain information in this news release may contain forward-looking statements that involve substantial known and unknown risks and uncertainties. Forward-looking statements are often identified by terms such as "will", "may", "should", "anticipate", "expects" and similar expressions. All statements other than statements of historical fact included in this news release are forward-looking statements that involve risks and uncertainties. There can be no assurance that such statements will prove to be accurate and actual results and future events could differ materially from those anticipated in such statements. Important factors that could cause actual results to differ materially from the Company's expectations are detailed from time to time in the filings made by the Company with securities regulations. The reader is cautioned that assumptions used in the preparation of any forward-looking information may prove to be incorrect. Events or circumstances may cause actual results to differ materially from those predicted, as a result of numerous known and unknown risks, uncertainties, and other factors, many of which are beyond the control of the Company. The reader is cautioned not to place undue reliance on any forward-looking information. Such information, although considered reasonable by management at the time of preparation, may prove to be incorrect and actual results may differ materially from those anticipated. Forward-looking statements contained in this news release are expressly qualified by this cautionary statement. The forward-looking statements contained in this news release are made as of the date of this news release and the Company disclaims any intention or obligation to update or revise such information, except as required by applicable law.