ATAC Resources Ltd. Sells 50% Interest in the Dawson Gold Joint Venture to Arcus Development Group Inc.
VANCOUVER, BC--(Marketwired - August 02, 2016) - ATAC Resources Ltd. (TSX VENTURE: ATC) (the "Company") is pleased to announce that it has concluded an agreement with Arcus Development Group Inc. ("Arcus") under which Arcus will acquire ATAC's 50% interest in the Dawson Gold Joint Venture (the "Joint Venture"). Formed in 2012, the Joint Venture contains four mineral properties: the Dan Man, Touleary, Green Gulch and Shamrock. All four properties are located in the White Gold District of west-central Yukon with the Dan Man sharing its southern property boundary with Goldcorp Inc.'s newly acquired Coffee Gold Project.
As payment for ATAC's 50% interest in the four Joint Venture properties, Arcus will issue ATAC 10,869,910 common shares and 5,000,000 share purchase warrants. The warrants will entitle ATAC to purchase an additional 5,000,000 Arcus common shares at a price of $0.20 per share at any time within five years of the closing of the transaction. ATAC will also retain a 1% net smelter return royalty interest in any future production from any of the four properties.
The 10,869,910 common shares being issued to ATAC will result in ATAC holding 19.99% of the Arcus issued share capital following the completion of the transaction. As a condition of the 5,000,000 share purchase warrants, ATAC is required to provide both Arcus and the TSX Venture Exchange (the "Exchange") with an undertaking that it will not exercise warrants if doing so will result in ATAC holding 20% or more of the issued Arcus share capital following the exercise of the warrants. The transaction is subject to Exchange acceptance.
"ATAC is pleased to gain long-term exposure to one of Yukon's premier exploration districts through its 1% NSR in the Dawson Gold Properties," states Graham Downs, ATAC's President and CEO. "ATAC is confident in Arcus' ability to add value to the properties and looks forward to participating in their future exploration success as a major shareholder."
About ATAC
ATAC is a Yukon-based exploration company focused on developing Canada's only Carlin-type gold district at its 100% owned Rackla Gold Project. Recent work on the 1,700 km2 project has resulted in a positive Preliminary Economic Assessment for the Tiger Gold Deposit, drilling of multiple high-grade Carlin-type gold zones and the identification of numerous early-stage gold exploration targets. The Rackla Gold Project has no underlying royalties or third-party interests. ATAC is well-financed with approximately $17 million in its treasury.
On behalf of Management and the Board of Directors
of ATAC Resources Ltd.
Graham Downs, President and CEO
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 NEWS RELEASE.
Contact
For further information, please contact:
Vanessa Pickering
Manager, Corporate Communications
ATAC Resources Ltd.
T: 604-687-2522 ext. 260
info@atacresources.com