Atlas Salt (the “Company” or “Atlas” - TSXV: SALT; OTCQB:
REMRF), 100% owner of North America’s premier undeveloped
high-grade salt 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 “Second
Tranche”) of its $10 million non-brokered private placement (the
“Offering”).
Mr. Rowland Howe, Atlas Salt President,
commented: “This $10 million private placement with two large
institutional investors is very strategic at this stage of Great
Atlantic’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 ‘anchor’ investors, Atlas has added considerable leverage to
its strategy of maximizing the potential value of this asset and
opportunity for shareholders.”
Mr. Howe added, “The Great Atlantic independent
Preliminary Economic Assessment is on track to be released before
the end of January.”
Second Tranche Details
The Second Tranche consisted of an aggregate of
2,500,000 units (the “Units”) 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 purchase
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 price of $2.40 per share at any
time on or before January 19, 2025.
In connection with the Second Tranche, the
Company paid cash finders’ fees of $350,000 and issued 175,000
finders’ warrants. Each finders’ 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 development 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.
Other Details
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
“Listed Issuer Financing Exemption”). 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
“Exchange”) 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 States’ 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.
Atlas Salt Corporate Video
Click on the following link to view the Company’s latest
corporate video:https://youtu.be/RlH5--Q2Vu0
Project Map
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 Fischell’s Brook Salt Dome in the heart of an emerging Clean
Energy Hub on the west coast of Newfoundland.
We seek Safe Harbor.
For information, please contact:
Patrick J. Laracy, CEO(709)
754-3186Email: laracy@atlassalt.com
MarketSmart Communications Inc.Adrian
SydenhamToll-free: 1-877-261-4466Email: info@marketsmart.ca
Forward-Looking Statements
This press release includes certain
"forward-looking information" and "forward-looking statements"
(collectively "forward-looking statements") within the meaning of
applicable Canadian securities legislation. All statements, other
than statements of historical fact, included herein, without
limitation, statements relating to the future operating or
financial performance of the Company, are forward-looking
statements. Forward-looking statements are frequently, but not
always, identified by words such as "expects", "anticipates",
"believes", "intends", "estimates", "potential", "possible", and
similar expressions, or statements that events, conditions, or
results "will", "may", "could", or "should" occur or be achieved.
Forward-looking statements in this press release relate to, among
other things: statements relating to the successful closing of the
Offering, the timing for delivery of the Preliminary Economic
Assessment, anticipated timing thereof and the intended use of
proceeds. Actual future results may differ materially. There can be
no assurance that such statements will prove to be accurate, and
actual results and future events could differ materially from
those anticipated in such statements. Forward looking statements
reflect the beliefs, opinions and projections on the date the
statements are made and are based upon a number of assumptions and
estimates that, while considered reasonable by the respective
parties, are inherently subject to significant business,
technical, economic, and competitive uncertainties and
contingencies. Many factors, both known and unknown, could cause
actual results, performance or achievements to be materially
different from the results, performance or achievements that are
or may be expressed or implied by such forward-looking statements
and the parties have made assumptions and estimates based on or
related to many of these factors. Such factors include, without
limitation: the timing, completion and delivery of the referenced
assessments and analysis. Readers should not place undue reliance
on the forward-looking statements and information contained in
this news release concerning these times. Except as required by
law, the Company does not assume any obligation to update the
forward-looking statements of beliefs, opinions, projections, or
other factors, should they change, except as required by law.
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.
A photo accompanying this announcement is
available
at https://www.globenewswire.com/NewsRoom/AttachmentNg/fd360187-ee59-41bf-adc3-45398cdc0c2f
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