/NOT FOR DISTRIBUTION TO U.S. NEWS WIRE
SERVICES OR DISSEMINATION IN THE UNITED
STATES./
VANCOUVER, BC, July 17, 2020
/CNW/ - Western Atlas Resources Inc. ("Western Atlas" or the
"Company") (TSXV: WA), is pleased to announce the closing of its
previously announced non-brokered private placement (the "Private
Placement"), pursuant to which the Company issued 35,900,000 units
at a price of C$0.10 per unit for
aggregate gross proceeds of approximately $3.59 million.
The Private Placement involved the sale of both flow-through
units ("FT Units") and non-flow- through units ("NFT
Units").
The FT Units 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 common
share of the Company at a price of C$0.15 per share for a period of two years from
the closing of the Private Placement.
The NFT Units 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 common share of the Company
at a price of C$0.15 per share 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 and a half years have elapsed from the closing of the
Private Placement if the Company's common shares have a closing
price on the TSX Venture Exchange (or such other exchange on which
they 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 warrant holders. In such
event, the warrants will expire on the 30th day after the date on
which such notice is given, which notice shall be deemed to have
been delivered to the holders three business days after it has been
sent by Western Atlas to the holders by regular mail.
The proceed of the Private Placement will be used for the
exploration of the Company's Meadowbank project in Nunavut, seeking restitution of the Increible
Project, the potential addition to the Company's exploration
portfolio of one or more properties located in different
jurisdictions and for general administrative expenses. The proceeds
for the sale of the FT Units will be used for Canadian Exploration
Expenses and will qualify as "flow-through mining expenditures", as
defined in the Income Tax Act (Canada).
The shares and warrants comprising the FT Units and NFT Units
and any shares issued upon the exercise of the warrants are subject
to a four month resale hold period under applicable Canadian
securities laws which expires on November
18, 2020.
Red Cloud Securities Inc. acted as a finder in connection with
the Private Placement.
Early Warning
Gran Colombia Gold Corp. ("Gran Colombia") (TSX: GCM) purchased
14,000,000 NFT Units of the Company in the Private
Placement for proceeds of C$1,400,000 and now holds 29,910,588 common
shares and 21,955,294 share purchase warrants of the Company. Gran
Colombia previously held
15,910,588 common shares of the Company. The common shares held by
Gran Colombia on closing of the Private Placement represent
approximately 25.8% of the outstanding common shares of Western
Atlas. Assuming the exercise of the share purchase warrants it
holds, Gran Colombia would hold 51,865,882 common shares
representing approximately 30.9% of the outstanding common shares
of the Company after giving effect to the exercise of Gran
Colombia's warrants but assuming no exercise of any other
outstanding warrants or options of the Company.
Gran Colombia advises that it acquired the NFT Units for
investment purposes and has no present intention to acquire further
securities of the Company, although it may in the future acquire or
dispose of securities of the Company through the market, privately
or otherwise, as circumstances or market conditions warrant.
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
