Atacama Pacific Gold Corporation (TSX.V: ATM) ("Atacama Pacific") announces it has filed a preliminary short form prospectus in the provinces of British Columbia, Alberta and Ontario and obtained a receipt from the securities regulatory authorities qualifying the distribution of up to 12,777,778 units of Atacama Pacific ("Units"). Each Unit will be comprised of one Atacama Pacific common share and one half of one Atacama Pacific common share purchase warrant (a "Warrant"). Each Warrant will entitle the holder to purchase one Atacama Pacific common share at the exercise price of $0.60 at any time on or before November 17, 2018.
The Units are being issued in connection with the special warrant financing led by Mackie Research Capital Corporation, pursuant to which Atacama Pacific sold and issued 12,777,778 special warrants ("Special Warrants") at a price of $0.45 per Special Warrant for gross proceeds of $5.75 million on November 17, 2016.
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.
The net proceeds from the special warrant financing 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.
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 Conceptos S.A., was the independent qualified person, as defined by NI 43-101, responsible for the compilation of the information and preparation of the overall 2014 Cerro Maricunga Gold Project Pre-Feasibility Study ("PFS"). Carlos Guzmán, a mining engineer and Principal and Project Director with NCL Ingeneiría y Construcción Ltda., 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 PFS including the reserve statement. Dr. Eduardo Magri, a mining engineer (University of Witwatersrand) and a Fellow of the Southern African Institute of Mining and Metallurgy, was the independent qualified person for the January 28, 2014 Cerro Maricunga resource estimate.
