Business
Atikokan Resources Inc. Provides Update On Merger with Silvermet Corporation
Atikokan Resources Inc. Provides Update On Merger with Silvermet Corporation.
About this update from Global Atomic Corporation
[{"type":"text","content":"\n\n\n\n\nTORONTO, March 2 /CNW/ - Atikokan Resources Inc. (TSX VENTURE: AKN)\n(\"Atikokan\" or the \"Company\") is pleased to provide an update on its proposed\nbusiness combination (the \"Business Combination\") with Silvermet Corporation\n(\"Silvermet\") to form a new company called \"Silvermet Corporation\" (\"Newco\").\nThe terms of the Business Combination have been amended such that: (i)\nthe holders of Silvermet common shares (the \"Silvermet Common Shares\") will\nreceive 1 common share of Newco (a \"Newco Common Share\") for each Silvermet\nCommon Share; and (ii) the holders of Atikokan common shares (the \"Atikokan\nCommon Shares\") will receive 1 Newco Common Share for every 5 Atikokan Common\nShares. The outstanding stock options of Silvermet and the stock options and\nwarrants of Atikokan will be exchanged for stock options and warrants,\nrespectively, of Newco based on the same ratio as the common shares of the\nrespective companies have been exchanged for Newco Common Shares.\nSilvermet has entered into an engagement letter with Dominick and\nDominick Securities Inc. pursuant to which Silvermet is proposing to issue up\nto: (i) 3,333,333 flow-through shares of Newco at a price of $0.30 per share;\nand (ii) up to 10,000,000 units (the \"Units\") of Newco at a price of $0.30 per\nunit, each unit comprising of one common share and one-half of one common\nshare purchase warrant (a \"Warrant\"), each Warrant exercisable into a common\nshare at a price of $0.45 per share. The financing will first be completed by\nissuing special warrants of Silvermet, which will be exercisable into the\nunderlying securities of Newco automatically without payment of any additional\nconsideration upon completion of the Business Combination.\nOn completion of the Business Combination and the financing, on a\nnon-diluted basis, the shareholders of Silvermet and Atikokan will own\napproximately 92.0% and 8.0% of Newco, respectively.\nThe Business Combination is subject to certain regulatory approvals and\nis conditional upon the completion of satisfactory due diligence by both\nAtikokan and Silvermet and the negotiation of a definitive agreement.\nCompletion of the transaction is subject to a number of conditions,\nincluding but not limited to, TSX-V acceptance and disinterested shareholder\napproval. The transaction cannot close until the...