Atlanta Gold (TSE) recently amended the terms of its private placement of stock-warrant units to Consolidated Ramrod Gold (TSE) at the request of The Toronto Stock Exchange.
Subject to regulatory approval, the placement now consists of 357,143 units priced at $1.40 each. Each unit consists of one common share, plus one warrant exercisable at $1.40 for two years.
Under an earlier proposal, the private placement to Consolidated Ramrod consists of 446,428 units. Each unit, priced at $1.12, consists of one common share of Atlanta and one share purchase warrant. The warrants would have been exercisable for two years at $1.40 a share.
Atlanta and Ramrod are both based in Vancouver and have common management. The Toronto Stock Exchange was concerned that there might be a perception that Ramrod was receiving preferential treatment in terms of pricing of the units, according to a company spokesman.
Atlanta says subscription proceeds will be used to finance a second-phase deep drilling program designed to expand reserves below two open pits hosting about 15 million tons of 0.05-0.08 oz. gold per ton. The plan calls for about US$325,000 to be spent on 14,200 ft. of drilling at the Idaho property.
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