Business
Shareholders Meeting Set for Atikokan Resources Inc.
Shareholders Meeting Set for Atikokan Resources Inc..
About this update from Global Atomic Corporation
[{"type":"text","content":"\n\n\n\n\nTORONTO, May 30 /CNW/ - Atikokan Resources Inc. (TSX VENTURE: AKN)\n(\"Atikokan\" or the \"Company\") is pleased to announce the meeting date seeking\nshareholder approval of the agreed business combination (the \"Business\nCombination\") between Atikokan and Silvermet Corporation (\"Silvermet\") to form\na new company called \"Silvermet Corporation\" (\"Newco\"). The shareholders\nmeeting will be held Thursday, June 29, 2006.\nUnder the terms of the Business Combination, the common shares of the\nCompany will be consolidated on a 1 for 5 basis and immediately thereafter:\n(i) the Company will acquire all of the issued and outstanding common shares\nof Silvermet in exchange for common shares of the Company on a one-for-one\nbasis; (ii) all of the warrants of Silvermet will be exchanged for replacement\nwarrants of the Company on a one-for-one basis; and (iii) all of the options\nof Silvermet will be exchanged for replacement options of the Company on a\none-for-one basis. In connection with the Business Combination, Silvermet will\ncomplete an equity financing of at least 3,333,333 flow-through shares of\nSilvermet at a price of $0.30 per share and at least 10,000,000 units of\nSilvermet at a price of $0.30 per unit, each unit comprising of one common\nshare and one-half of one common share purchase warrant, each warrant\nexercisable into a common share at a price of $0.45 per share for a period of\n12 months from the date of issue. Silvermet has received commitments for\n5,419,997 flow-through shares and 11,436,500 units for aggregate gross\nproceeds of $5,056,949 upon completion of the equity financing. On completion\nof the Business Combination and the financing, on a non-diluted basis, the\nshareholders of Silvermet and Atikokan will own approximately 92.9% and 7.3%\nof Newco, respectively.\nDominick & Dominick Securities Inc., subject to the completion of\nsatisfactory due diligence, has been retained to act as sponsor of the\ntransaction. An agreement to sponsor should not be construed as any assurance\nwith respect to the merits of the transaction or the likelihood of completion.\nIn accordance with TSXV policies, Atikokan is finalizing documentation\nproviding full disclosure of the transaction required to be filed in\naccordance with Policy 5.2 of the TSXV, which includes the Management\nInformation Circul...