March 27, 2009
Vancouver, BC – ATW Gold Corp. (ATW: TSX-V) (“ATW” or “the Company”), is pleased to announce a non-brokered private placement (the “Private Placement”) of up to 7,258,064 units (the “Units”) priced at $0.62 per Unit to raise up to $4,500,000.
Each Unit consists of one common share and one-half of one non-transferable common share purchase warrant (the “Warrants”). Each whole Warrant will be exercisable into one additional common share of the Company for one year from the closing date of the Private Placement (the “Closing Date”) at an exercise price of $0.80 per common share.
All securities issued pursuant to the Private Placement will be subject to a 4-month hold period from the Closing Date. Finders’ fees are payable on the non-insider portions of the Private Placement. The Private Placement is subject to approval from the TSX Venture Exchange.
Of the $4,500,000 comprising the Private Placement, Sprott Asset Management Inc., as portfolio manager for various funds, is purchasing a total of $3,503,000. The remaining $997,000 of the Private Placement is being purchased by other investors and insiders.
Proceeds of the Private Placement will be used to fund the Company’s current working capital needs as it increases production from its Burnakura Gold Mine.
Production at Burnakura commenced on March 3, 2009 and the Company’s first gold pour occurred today.
Graham Harris, Chairman of ATW Gold Corp. commented, “ATW Gold Corp welcomes Sprott Asset Management Inc. as a significant shareholder of our Company. This financing ensures that we have adequate working capital through the initial production phase at the Burnakura Gold Mine. “
CONVERTIBLE DEBENTURE OFFERING NOT PROCEEDING
On February 19, 2009, the Company announced that it was engaging in an offering of convertible debentures. This offering of convertible debentures is not proceeding.
To find out more about ATW Gold Corp. please contact investor relations at 604-662-8184 or email investor@atwgold.com. You may also visit our website at www.atwgold.com.
ATW GOLD CORP.
“Graham Harris”
Graham Harris
Chairman & Director
“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.”
“This news release may contain forward–looking statements. Forward-looking statements address future events and conditions and therefore involve inherent risks and uncertainties. Actual results may differ materially from those currently anticipated in such statements.” |
