Vancouver, British Columbia, February 21, 2023 /CNW/- ATAC Resources Co., Ltd. (“ATAC“) (TSXV: ATC) (OTCQB: ATADF) is a non-binding letter of intent (“Roy“) Hecla Mining Company (“)Hecla“) (NYSE:HL) on the proposed transaction, Hecla Acquire all outstanding shares of ATAC. $0.14 Hecla ordinary shares (“Proposed deal“. ATAC shareholders will also receive shares in the new exploration company (“Spinko“) retains all of ATAC’s rights and interests in the Idaho Creek, Catch, Rosie, and PIL Projects (“spin core set“) and ATAC’s cash balance after completion of the proposed transaction.
according to the LOI, Hecla I’m going to make 2 million Canadian dollars Strategic investment (“strategic investment“) to Spinko Hecla (i) obtain a right of first refusal (“ROFR“) acquisition of any or all of the Spinco Assets; and (ii) a number of Spinco’s units (“spinco unitUpon completion of the strategic investment, it will own 19.9% of Spinco’s outstanding common stock. Each Spinco unit contains one share of Spinco common stock.Spincoshare“) and one warrant (“Spin CowarrantEach Spinco Warrant has rights. Hecla Right to purchase one additional Spinco Share for five years at the same price as a Spinco Unit.
Proposed transaction represents consideration for ATAC shareholders 31 million Canadian dollars of Hecla Stock and about value 8 million Canadian dollars In Spinco shares based on Heclaz 2 million Canadian dollars Arrangement1ATAC’s board and management believe that the proposed transaction is in ATAC’s best interests.of Hecla The shares to be received will offer ATAC shareholders a 66% premium based on ATAC’s 20-day volume-weighted average price. $0.0845 the current February 17, 2023or 109% premium when Spinco value is included.
“We believe the potential transaction will bring significant value to ATAC shareholders. Hecla The adjacent Kino Hill mining project and Yukon and its community. As an established and successful multi-asset producer, Hecla Have the resources, strengths and experience to meaningfully advance known goals at Rackla, connaught,said ATAC’s president and CEO. Graham Downes.Spin-out of new copper-focused exploration company provides added value for shareholders. Building on existing copper assets, Spinco is well positioned to actively explore for copper, a key metal of importance throughout British Columbia. Yukon. we, Hecla The team will negotiate a binding agreement for the proposed transaction, after which the new Spinco will proceed in partnership.“
LOI is valid from February 17thth2023, (i) entering into a final and binding contract relating to the proposed transaction (“final agreement“), and (ii) March 15thth, 2023. The LOI contains customary provisions, including an exclusivity period for that period. The final structure of the proposed transaction will be governed by the terms of the final contract. LOI does not create binding contracts. Hecla ATAC and Hecla Reach agreement on the terms of the definitive agreement set forth in the LOI, or reach agreement at all. In addition to the parties entering into the definitive agreement, the closing of the proposed transaction is subject to, among other conditions, satisfactory completion of due diligence, voting support of major shareholders, shareholder approval, and approval of the TSX Venture Exchange. becomes.
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1) The C$8.1 million value of Spinco to be received by ATAC shareholders is based on Spinco’s implied equity capital of $10.05 million based on Hecla’s $2 million investment to receive a 19.9% principal interest in Spinco. , multiplied by the 80.1% stake in Spinco received. By ATAC shareholders.
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Advisor and Counsel
Agentis Capital Mining Partners is acting as financial advisor to ATAC on the proposed transaction. Stikeman Elliott LLP is acting as legal counsel to ATAC.
About ATAC
ATAC is a Canadian exploration company focused on gold and copper exploration. YukonBC and NevadaApproximately 1,700 km of work2 Rackla Gold Property Yukon This resulted in an Osiris Deposit Indicated Resource of 732,000 ounces of gold at 4.12 g/t (5.5 Mt) and an Inferred Resource of 1,044,000 ounces of gold at 3.47 g/t (9.4 Mt), the Tiger Deposit Measured & Indicated Resource.464,000 ounces of gold with an average grade of 3.19 g/t (4.5 million tonnes), a positive preliminary economic assessment for the Tiger gold deposit (pre-tax NPV of $118.2 million IRR 54.5%), with many early-stage gold and base metal discoveries. ATAC is approximately $4.5 million in working capital.
The technical information in this news release is Andrew KahnM.Eng., P.Eng., VP Corporate & Project Development for ATAC and qualified person for purposes of National Instrument 43-101.
almost Hecla
Founded in 1891, the Hecla Mining Company is America’s largest silver producer. usaIn addition to operating mines Alaska, Idahoand Quebec, Canadathe company is developing a mine in Yukon, Canadaand owns many exploration and pre-development projects in world-class silver and gold mining districts around the world North America.
On behalf of ATAC Resources Ltd.
Graham DownesPresident, CEO, Director
NEITHER TSX VENTURE EXCHANGE NOR ITS REGULATORY SERVICE PROVIDERS (AS THAT TERM IS DEFINED IN THE TSX VENTURE EXCHANGE POLICY) ARE RESPONSIBLE FOR THE SUITABILITY OR ACCURACY OF THIS NEWS RELEASE.
Cautionary Note Regarding Forward-Looking Statements:
This press release may contain “forward-looking information” within the meaning of applicable securities laws. Readers are cautioned not to place undue reliance on forward-looking information. Actual results and deployment may differ materially from those envisioned in these statements. The statements in this press release are current as of the date of this press release. We undertake no obligation to update any forward-looking information, except as required by securities laws.
NOTICE TO US INVESTORS REGARDING MEASURED, DISPLAYED AND INSUMED RESOURCES ESTIMATES:
Mineral Resource estimates contained in this press release were made in accordance with Canadian National Instrument 43-101 – Standards of Disclosure for Mineral Projects. The U.S. Securities and Exchange Commission (“SEC”) has adopted amendments to its disclosure rules that modernize the disclosure requirements for mineral properties. U.S. investors should be aware that the mineral characterization disclosures provided by the Company in this news release may differ from disclosures that issuers subject to SEC reporting requirements may be required to provide. Therefore, the information contained in this news release, including our description of mineral properties, cannot be compared to similar information published by US companies subject to reporting and disclosure requirements under the US federal securities laws and their rules and regulations. There are cases.
Additional information on Tiger Deposit PEA can be found at ATAC February 27, 2020 a technical report titled “Tiger Deposit, Rackla Gold Project Technical Report and Preliminary Economic Evaluation”; Yukon, Canadacan be viewed at www.sedar.com Under your ATAC profile or on the ATAC website www.atacresources.comAdditional information on the Osiris Resource Estimate can be found in ATAC’s July 28, 2022 A technical report titled “Osiris Project Technical Report and Mineral Resource Estimation”, Yukon, Canadacan be viewed at www.sedar.com Under your ATAC profile or on the ATAC website www.atacresources.com.
