Atac raising $3 million for B.C., Yukon exploration
Atac Resources Ltd. (ATC-TSXV) has announced plans to raise $3 million from a private placement financing. Proceeds will be used to support the company’s 2022 exploration program in British Columbia and Yukon.
It said the offering will consist of the sale of up to 18.75 million flow-through units at 16 cents per unit. Each unit will consist of one flow-through common share and one-half of a share purchase warrant, with each whole warrant entitling the holder to purchase one additional common share at 22 cents for two years after the closing date.
Atac is a Vancouver-based exploration company with properties in the Yukon, B.C. and Nevada. Its main focus has been on developing Canada’s only Carlin-style gold district and intrusion-related polymetallic targets at the 1,700 square kilometre Rackla property in east central Yukon.
Work on the Rackla Gold property has resulted in the Osiris project inferred resource of 1.68 million ounces of gold at an average grade of 4.23 g/t gold (in 12.4 million tonnes).
The company recently released an updated mineral resource estimate and preliminary economic assessment (PEA) for a gold deposit located at the western end of its Rackla property.
According to the updated mineral resource estimate, the Tiger Deposit contains a measured and indicated resource of 4.52 million tonnes grading 3.19 g/t gold or 464,000 ounces. That includes an indicated oxide resource (open pit) of 1.98 million tonnes, grading 3.74 g/t or 238,000 ounces.
In another development, the company has signed an option deal for a property located in the prolific Toodogone porphyry and epithermal district of northern B.C.  Under the proposed deal, Atac can acquire a 70% stake in the PIL property from Finlay Minerals Ltd. [FYL-TSXV] in return for $1.9 million in cash and shares. It must also incur $12 million worth of exploration spending by December 31, 2026.
Once the option is exercised, Atac and Finlay will each own 70% and 30% of the project respectively.
Atac said the $3 million financing supports a 2022 exploration program that will be anchored by 2,000 metres of diamond drilling at the Osiris Gold deposit and 5,000 metres of reverse circulation at the Connaught Copper Property. The company said it has identified 26 distinct silver-lead-gold-copper-zinc veins on the 137 square kilometre Connaught property, which is located 65 kilometres west of Dawson City.
Funds will also be used to ramp up exploration at the PIL Property with a phase 1.0 geophysical program in early summer and a phase 2.0 drill program in the fall. “Raising these flow-through funds gives us the ability to accelerate drill programs targeting discovery and resource growth, and conduct aggressive exploration in Yukon and BC,” said Atac President and CEO Graham Downs.
News of the financing was released after the close of trading on March 9, 2022, when Atac shares closed unchanged at 15 cents. The shares are now trading in a 52-week range of 20 cents and $0.09.