/NOT FOR DISTRIBUTION TO U.S. NEWS WIRE
SERVICES OR DISSEMINATION IN THE UNITED
STATES/
VANCOUVER, BC, July 8, 2020 /CNW/ - Western Atlas Resources
Inc. ("Western Atlas" or the "Company") (TSXV: WA),
is pleased to announce the start the drill program (the
"Program") at its 100% owned Meadowbank Gold Project located in
Nunavut, Canada.
The Company is also pleased to announce a non-brokered private
placement (the "Private Placement") to raise gross
proceeds of C$2,000,000 in a mix of
flow-through ("FT") and non-flow-through ("NFT")
units (the "Units"), with Gran Colombia Gold Corp. ("Gran
Colombia") (TSX: GCM)
purchasing NFT Units for proceeds of C$1,400,000.
Fabio Capponi, CEO stated: "We
are very pleased with the decision of the CPHO, and to be able to
advance with the previously announced drill program while
committing to the safety and well-being of all our employees and
that of the Nunavut community in
which the Company operates. This initial drill program represents
an important milestone for the Company as we focus on advancing the
exploration of the Meadowbank project. We would like to thank Gran
Colombia for its continuous support and for understanding that
drilling the current Company's flagship gold project is the only
way to unlock long term value for our shareholders".
The Drill Program:
After receiving clearance from the Chief Public Health Officer
of Nunavut ("CPHO") and having
completed a 14 days quarantine, the Company team and contractors
will be able to travel to Baker
Lake to start the drill program (the "Program") at its 100%
owned Meadowbank Gold Project located in Nunavut, Canada. Drilling is now expected to
start next week.
The diamond drill program will primarily be discovery focused
and will target previously identified geological features such as
banded iron formation (BIF) and shear zones with interpreted total
strike lengths of 15 km and 6 km, respectively. Drilling logistics
is currently being mobilized to site (for more details regarding
Western Atlas diamond drill program please refer to the Company's
press release issued on February 18,
2020).
At the present time there are no confirmed cases of COVID-19
in Nunavut or among the Western Atlas team members. The
Company is working together with its stakeholders to ensure the
continued health of local residents in the community in which it
operates and will reassess the situation on an ongoing basis.
Paul Chamois, P.Geo, is the Qualified Person as defined by
National Instrument 43-101 and is responsible for reviewing and
supervising the preparation of the scientific and technical
disclosure in this news release.
The Private Placement:
The proposed Private Placement will consist of the sale of
flow-through units ("FT Units") and non-flow-through units
("NFT Units") at a price of C$0.10.
The FT Units will consist of one flow-through common share and
one-half (1/2) of one non flow-through common share purchase
warrant, with each whole warrant exercisable for one additional
Western Atlas Share at a price of C$0.15 for a period of two years from the closing
of the Private Placement.
The NFT Units will consist of one non-flow-through common share
and one non-flow-through common share purchase warrant, with each
whole warrant exercisable for one additional Western Atlas Share at
a price of C$0.15 for a period of two
years from the closing of the Private Placement.
Western Atlas may accelerate the expiry date of the Warrants
after one year and a half have elapsed from the Closing in the
event the Common Shares have a closing price on the TSX Venture
Exchange (or such other exchange on which the Common Shares may be
traded at such time) of greater than C$0.18 per share for a period of 20 consecutive
trading days, by giving notice to the holders thereof and, in such
case, the Warrants will expire on the 30th day after the date on
which such notice is given to the holders by Western
Atlas, which notice shall be deemed to have been delivered to
the holder three business days after the notice has been sent by
Western Atlas to the holder by regular mail.
Finder's fees or brokers commissions may be payable on a portion
of the Offering. Red Cloud Securities Inc. is acting as a
finder in connection with the Offering.
Proceeds from the Private Placement shall be used by Western
Atlas for the drilling at Western Atlas's Meadowbank gold project
in Nunavut, Canada, seeking
restitution of the Increible Project, and for general and
administrative expenses.
About Western Atlas
The Company's common shares are listed on the TSX Venture
Exchange under the symbol WA. Western Atlas is focused on the
acquisition and development of scalable precious metals projects in
premier mining jurisdictions. Western Atlas's wholly owned
subsidiary, 5530 Nunavut Inc., holds its interests in the
Meadowbank project located in Nunavut,
Canada.
Cautionary Statement Regarding Forward-Looking
Information
This news release includes certain "forward-looking statements"
under applicable Canadian securities legislation that are not
historical facts. Forward-looking statements involve risks,
uncertainties, and other factors that could cause actual results,
performance, prospects, and opportunities to differ materially from
those expressed or implied by such forward-looking statements.
Forward-looking statements in this news release include, but are
not limited to, statements with respect to the Company's
objectives, goals or future plans; the receipt of the requisite
approvals with respect to the business and operations of the
Company. Forward-looking statements are necessarily based on a
number of estimates and assumptions that, while considered
reasonable, are subject to known and unknown risks, uncertainties
and other factors which may cause actual results and future events
to differ materially from those expressed or implied by such
forward-looking statements. Such factors include, but are not
limited to: general business, economic and social uncertainties;
litigation, legislative, environmental and other judicial,
regulatory, political and competitive developments; delay or
failure to receive board, shareholder or regulatory approvals;
those additional risks set out in Western Atlas's public documents
filed on SEDAR at www.sedar.com; and other matters discussed in
this news release. Although Western Atlas believes that the
assumptions and factors used in preparing the forward-looking
statements are reasonable, undue reliance should not be placed on
these statements, which only apply as of the date of this news
release, and no assurance can be given that such events will occur
in the disclosed time frames or at all. Except where required by
law, Western Atlas disclaims any intention or obligation to update
or revise any forward-looking statement, whether as a result of new
information, future events, or otherwise.
Reader Advisory
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.
SOURCE Western Atlas Resources
