Atlas Salt Closes $10 Million Private Placement
ST. JOHNâ€™S, Newfoundland and Labrador, Jan. 20, 2023 (GLOBE NEWSWIRE) -- Atlas Salt (the â€œCompanyâ€ or â€œAtlasâ€ â€Žâ€Ž- TSXV: SALT; OTCQB: REMRF), 100% owner of North Americaâ€™s premier undeveloped high-grade â€Žsalt project, is pleased to announce that further to its news releases dated January 12, 2023, and January 17, 2023, it has successfully closed the second and final tranche (the â€œSecond Trancheâ€) of its $10 million non-brokered private placement (the â€œOfferingâ€).
Mr. Rowland Howe, Atlas Salt President, commented: â€œThis $10 million private placement with two large institutional investors is very strategic at this stage of Great Atlanticâ€™s development. Atlas is blessed with a unique and highly advantaged asset in the heart of a robust road salt market in eastern North America facing a domestic production shortfall, the result of only one new mine being built in the last 60 years. With these â€˜anchorâ€™ investors, Atlas has added considerable leverage to its strategy of maximizing the potential value of this asset and opportunity for shareholders.â€
Mr. Howe added, â€œThe Great Atlantic independent Preliminary Economic Assessment is on track to be released before the end of January.â€
Second Tranche Details
The Second Tranche consisted of an aggregate of 2,500,000 units (the â€œUnitsâ€) at a price of $2.00 per Unit for gross proceeds of $5,000,000. Each Unit consisted of one common share of the Company and one-half of one common share â€Žpurchase warrant for an aggregate of 2,500,000 common shares and 1,250,000 warrants. Each full warrant will entitle the holder thereof to purchase one common share at a â€Žprice of $2.40 per share at any time on or before January 19, 2025.
In connection with the Second Tranche, the Company paid cash findersâ€™ fees of $350,000 and issued 175,000 findersâ€™ warrants. Each findersâ€™ warrant entitles the holder to purchase one common share of the Company for a period of 24 months from the date of issuance at a price of $2.40 per warrant.
Use of Proceeds
The Company intends to use the proceeds raised from the Offering for general working capital purposes and the advancement and initiation of the pre-production â€Ždevelopment of the Great Atlantic Salt Project on the west coast of Newfoundland. Atlas now has a current cash position of $18 million with no debt.
The Units were sold to purchasers resident in Canada pursuant to the listed issuer financing exemption under Part 5A of National Instrument 45-106 - Prospectus Exemptions (the â€œListed Issuer Financing Exemptionâ€). Since the Offering was completed pursuant to the Listed Issuer Financing Exemption, the securities issued in the Offering will not be subject to a hold period pursuant to applicable Canadian securities laws. The Second Tranche was conditionally approved by the TSX Venture Exchange (the â€œExchangeâ€) on January 13, 2023. The Closing of the Offering remains subject to final acceptance by the Exchange. The securities described herein have not been, and will not be, registered under the United States Securities Act of 1933, as amended (the "U.S. Securities Act"), or any U.S. state securities laws, and may not be offered or sold in the United States or to, or for the account or benefit of, United Statesâ€™ persons absent registration or an applicable exemption from the registration requirements of the U.S. Securities Act and applicable U.S. state securities laws. This press release does not constitute an offer to sell or the solicitation of an offer to buy securities in the United States, nor in any other jurisdiction.
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About Atlas Salt
Bringing the Power of SALT to Investors: Atlas Salt owns 100% of the Great Atlantic salt deposit strategically located in western Newfoundland in the middle of the robust eastern North America road salt market. The project features a large homogeneous high-grade resource located immediately next to a deep water port. Atlas is also the largest shareholder in Triple Point Resources as it pursues development of the Fischellâ€™s Brook Salt Dome in the heart of an emerging Clean Energy Hub on the west coast of Newfoundland.
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This press release includes certain "forward-looking information" and "forward-looking â€Žstatements" (collectively "forward-looking statements") within the meaning of applicable Canadian â€Žsecurities legislation. All statements, other than statements of historical fact, included herein, without â€Žlimitation, statements relating to the future operating or financial performance of the Company, are â€Žforward-looking statements. Forward-looking statements are frequently, but not always, identified by â€Žwords such as "expects", "anticipates", "believes", "intends", "estimates", "potential", "possible", and â€Žsimilar expressions, or statements that events, conditions, or results "will", "may", "could", or "should" â€Žoccur or be achieved. Forward-looking statements in this press release relate to, among other things: â€Žstatements relating to the successful closing of the Offering, the timing for delivery of the Preliminary Economic Assessment, anticipated timing thereof and the â€Žintended use of proceeds. Actual future results may differ materially. There can be no assurance that â€Žsuch statements will prove to be accurate, and actual results and future events could differ materially â€Žfrom those anticipated in such statements. Forward looking statements reflect the beliefs, opinions and â€Žprojections on the date the statements are made and are based upon a number of assumptions and â€Žestimates that, while considered reasonable by the respective parties, are inherently subject to significant â€Žbusiness, technical, economic, and competitive uncertainties and contingencies. Many factors, both â€Žknown and unknown, could cause actual results, performance or achievements to be materially different â€Žfrom the results, performance or achievements that are or may be expressed or implied by such forward-â€Žlooking statements and the parties have made assumptions and estimates based on or related to many of â€Žthese factors. Such factors include, without limitation: the timing, completion and delivery of the â€Žreferenced assessments and analysis. Readers should not place undue reliance on the forward-looking â€Žstatements and information contained in this news release concerning these times. Except as required by â€Žlaw, the Company does not assume any obligation to update the forward-looking statements of beliefs, â€Žopinions, projections, or other factors, should they change, except as required by law.â€Ž
TSX Venture Exchange Disclaimer
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 release.
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