Mr. Etienne Moshevich reports
ATCO MINING CLOSES PRIVATE PLACEMENT FOR $1,173,000
Atco Mining Inc. has closed its non-brokered private placement and has issued 11.73 million units at a price of 10 cents per unit for gross proceeds of $1,173,000. Each unit consists of one common share of the company and one transferable common share purchase warrant, entitling the holder thereof to purchase one additional share at a price of 15 cents until Aug. 15, 2025.
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 finders' fees totalling $16,000 and issued 160,000 warrants to certain arm's-length brokerage firms. All securities issued in connection with the private placement are subject to a statutory hold period until Dec. 17, 2023, 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 $285,000, or 2.85 million 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. The issuance of securities to Transcend Capital 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 does not exceed 25 per cent of the company's market capitalization.
About Atco Mining Inc.
Atco is a junior exploration mining company focused on exploring for green energy metals throughout Canada. Atco is also exploring for sulphide-rich VHMS (volcanic-hosted massive sulphide) deposits in Saskatchewan as well as salt opportunities in western Newfoundland.
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