- Atlas Salt (SALT) closed a non-brokered private placement for gross proceeds of $10,000,000
- Net proceeds raised will be used primarily to advance the pre-production development of the Great Atlantic Salt Project
- Atlas Salt owns the Great Atlantic salt deposit located in Newfoundland
- Atlas Salt Inc. (SALT) opened trading at C$2.14
Atlas Salt (SALT) closed its previously announced non-brokered private placement for gross proceeds of $10,000,000.
Company president Rowland Howe commented on the capital raise.
“This $10 million private placement with two large institutional investors is very strategic at this stage of Great Atlantic’s development. Atlas is blessed with a unique and highly advantaged asset in the heart of a robust road salt market in eastern North America, facing a domestic production shortfall, the result of only one new mine being built in the last 60 years. With these ‘anchor’ investors, Atlas has added considerable leverage to its strategy of maximizing the potential value of this asset and opportunity for shareholders.”
Mr. Howe added,
“The Great Atlantic independent Preliminary Economic Assessment is on track to be released before the end of January.”
Under the second tranche, the company issued 2,500,000 units at a price of $2.00 per unit for gross proceeds of $5,000,000. Each unit consisted of one common share and one-half of one common share purchase warrant. Each whole warrant will entitle the holder to purchase one additional common share at any time on or before January 19, 2025.
In connection with the second tranche, the company paid cash finders’ fees of $350,000 and issued 175,000 finders’ warrants.
Net proceeds raised will be used for general working capital purposes and the advancement and initiation of the pre-production development of the Great Atlantic Salt Project on the west coast of Newfoundland.
Atlas now has a current cash position of $18 million with no debt.
Atlas Salt owns the Great Atlantic salt deposit located in Newfoundland in the middle of the eastern North American road salt market.
Atlas Salt Inc. (SALT) opened trading at C$2.14.