Magnum signs definitive agreement to acquire Atlantico

Executive Summary

• Magnum Goldcorp Inc. has entered into a definitive amalgamation agreement to acquire all outstanding shares of Atlantico Energy Metals Inc.
• The acquisition consideration consists of Magnum common shares and transferable warrants, valued at a deemed price of at least 10 cents per unit.
• Atlantico intends to raise up to $1.38 million via a private placement prior to closing to fund transaction and operational expenses.

Key Details

• Transaction Structure: Magnum Goldcorp will acquire all outstanding shares of Atlantico Energy Metals.
• Consideration: Magnum will issue units consisting of one common share and one transferable warrant per Atlantico share.
• Valuation: The deemed price for each consideration unit is the greater of 10 cents or the minimum price permitted by the TSX Venture Exchange.
• Warrant Terms: Each warrant entitles the holder to acquire one additional share at an exercise price of 20 cents for a period of 24 months from closing.
• Atlantico Private Placement: Prior to closing, Atlantico plans to raise gross proceeds of up to $1.38 million by issuing up to 13.78 million shares at 10 cents per share.
• Use of Proceeds (Atlantico): Funds will be used for transaction expenses, exploration expenses, investor relations and marketing expenses, and general and administrative expenses.
• Listing Changes: Magnum anticipates seeking shareholder approval to delist from the TSX Venture Exchange and list on the Canadian Securities Exchange post-transaction.
• Conditions Precedent: Transaction completion is subject to shareholder approvals, regulatory approvals, and stock exchange approvals.

Notable Quotes

• None provided in the text.