TORONTO, April 14, 2016 /CNW/ - 2176423 Ontario Ltd. (the "Offeror"), a company controlled by Eric S. Sprott ("Sprott"), announced today that it acquired (the "Acquisition") ownership of 1,429,000 common shares (the "Acquired Shares") of Atlanta Gold Inc. (the "Corporation") at a price of $0.07 per Acquired Share, representing approximately 4.1% of the currently issued and outstanding common shares of the Corporation (the "Shares") on a non-diluted basis.
As of the date hereof, after giving effect to the Acquisition, the Offeror owns 1,429,000 Shares, representing approximately 4.1% of the currently issued and outstanding Shares on a non-diluted basis. All of these securities are beneficially owned and controlled by Sprott. In addition, Sprott directly owns: (i) 1,095,368 Shares; and (ii) 2,200,000 common share purchase warrants of the Corporation (the "Warrants"). Therefore, Sprott beneficially owns and exercises control and direction over, directly or indirectly, 2,524,368 Shares and 2,200,000 Warrants, representing approximately 7.3% of the currently issued and outstanding Shares on a non-diluted basis, and approximately 12.8% of the currently issued and outstanding Shares on a partially diluted basis.
The Acquired Shares were purchased from the Corporation on a private placement basis.
The Acquired Shares were purchased for investment purposes. The Offeror has a long-term view of the investment and the Offeror and any joint actors do not intend at this time to acquire additional Shares, but may acquire additional Shares either on the open market or through private acquisitions or sell the Shares either on the open market or through private dispositions in the future depending on market conditions, reformulation of plans and/or other relevant factors.
This press release is issued pursuant to National Instrument 62-103 – The Early Warning System and Related Take-Over Bid and Insider Reporting Issues, which also requires a report to be filed with regulatory authorities in each of the jurisdictions in which the Corporation is a reporting issuer containing information with respect to the foregoing matters (the "Early Warning Report"). A copy of the Early Warning Report will appear with the Corporation's documents on the System for Electronic Document Analysis and Retrieval and may also be obtained by contacting the Offeror at (416) 362-7172.
The issuance of this news release is not an admission that an entity named in the news release owns or controls any described securities or is a joint actor with another named entity.
SOURCE 2176423 Ontario Ltd.
For further information: 2176423 Ontario Ltd., c/o 200 Bay Street, Suite 2700, Royal Bank Plaza, South Tower, Toronto, Ontario, M5J 2J1