TORONTO, June 29 /CNW/ - Atikokan Resources Inc. (TSX VENTURE: AKN)
("Atikokan" or the "Company") is pleased to announce the Company has received
shareholder approval at the annual and special meeting of the Company held on
June 29, 2006 to complete the previously announced business combination (the
"Business Combination") with Silvermet Corporation. Atikokan shareholders
approved the consolidation of the common shares of the Company on a 1 for 5
basis. The Atikokan shareholders also approved: (i) the acquisition by the
Company all of the issued and outstanding common shares of Silvermet in
exchange for common shares of the Company on a one-for-one basis; (ii) the
exchange of all of the warrants of Silvermet for replacement warrants of the
Company on a one-for-one basis; and (iii) the exchange of all of the options
of Silvermet for replacement options of the Company on a one-for-one basis,
each to be completed following the share consolidation. Details of the
resolutions considered at the meeting are disclosed in the management
information circular of the Company dated May 29, 2006 filed at www.sedar.com.
In connection with the Business Combination, Silvermet will complete an
equity financing of 5,419,997 flow-through shares of Silvermet at a price of
$0.30 per share and 11,533,333 units of Silvermet at a price of $0.30 per
unit, each unit will be comprised of one common share and one-half of one
common share purchase warrant. Each warrant will be exercisable into a common
share of Silvermet at a price of $0.45 per share for a period of 12 months
from the date of issue. In addition, 1,594,997 broker warrants will be issued,
each broker warrant will give the holder thereof the right to purchase one
Silvermet unit at a price of $0.30 per unit.
D & D Securities Company, subject to the completion of satisfactory due
diligence, has been retained to act as sponsor of the transaction. An
agreement to sponsor should not be construed as any assurance with respect to
the merits of the transaction or the likelihood of completion.
Completion of the transaction is subject to final TSXV acceptance.
Trading in the securities of Atikokan should be considered highly speculative.
The TSX Venture Exchange does not accept responsibility for the adequacy
or accuracy of this release.
This press release includes certain "forward-looking information" within
the meaning of the Securities Act (Ontario). All statements regarding the
Business Combination, the financing, the anticipated closing dates and the
application to the TSX Venture Exchange are forward-looking statements that
involve various risks and uncertainties. There can be no assurance that the
Business Combination and financing will be completed or that the transactions
will close on the dates anticipated. Important factors that could cause actual
results to differ materially from these forward-looking statements include:
the failure to close the financing; the failure to receive the requisite
approvals from the TSX Venture Exchange; and other factors disclosed under the
heading "Risk Factors" and elsewhere in Atikokan documents filed from time to
time with the Canadian securities authorities. Atikokan does not assume the
obligation to revise or update these forward-looking statements after the date
of this document or to revise them to reflect the occurrence of futre
unanticipated events, except as may be required under applicable securities
laws.
