Atacama Pacific Gold Corporation (TSX.V: ATM) ("Atacama Pacific") is pleased to announce that it has closed its previously announced special warrant ("Special Warrant") financing (the "Offering") led by Mackie Research Capital Corporation ("Mackie Research"). Atacama Pacific issued 12,777,778 Special Warrants at a price of $0.45 per Special Warrant for gross proceeds of $5.75 million. The gross proceeds include $750,000 resulting from Mackie Research exercising the full amount of a 15% over-allotment option.
The net proceeds from the Offering will be used to commence a feasibility study on Atacama Pacific's Cerro Maricunga Oxide Gold Project and for working capital and general corporate purposes. Located 140 kilometres by road northeast of the city of Copiapo, Chile, the Cerro Maricunga oxide gold deposit hosts 3.74 million ounces of gold in the Proven and Probable mineral reserve category (294.4 million tonnes grading 0.40 g/t Au) representing one of the largest undeveloped oxide associated gold deposits in the world.
Each Special Warrant entitles the holder to acquire, upon deemed exercise and for no additional consideration, one unit (a "Unit") consisting of one common share and one-half of one common share purchase warrant. Each whole warrant entitles the holder to acquire an additional common share at an exercise price of $0.60 during the period ending 24 months from closing.
Atacama Pacific has agreed to use its best efforts to obtain, by December 27, 2016, a receipt for a final short form prospectus qualifying the distribution of the Units upon exercise of the Special Warrants (the "Prospectus Qualification"). If the Prospectus Qualification does not occur before December 27, 2016, each holder will be entitled to receive, without payment of additional consideration, 1.1 Units per Special Warrant. Unless the Prospectus Qualification occurs, securities issued in connection with the Offering are subject to a 4-month hold period that expires on March 18, 2017.
In consideration for their services, the Mackie Research has received a cash commission of $344,500 plus 765,556 broker warrants. Each broker warrant entitles the Mackie Research to acquire one Unit at $0.45 per Unit during the period ending 18 months from closing of the Offering.
National Instrument 43-101 Disclosure
Maria Leticia Conca Benito, Mining Engineer, Universidad de Chile, Registered Member of Chilean Mining Commission, CEO and Project Director, Alquimia, was the independent qualified person, as defined by NI 43-101, responsible for the compilation of the information and preparation of the overall 2014 Pre-Feasibility Study. Carlos Guzmán, a mining engineer, Fellow of the Australasian Institute of Mining and Metallurgy and a Registered Member of the Chilean Mining Commission, was the independent qualified person responsible for the mining related sections of the 2014 PFS including the generation of the pit shell for constrained resources and the mineral reserve estimate.
Source: Atacama Pacific Gold
