Atacama Minerals completes $60-million financing

Atacama Minerals completes $60-million financing

2011-12-20 10:41 ET – News Release

Mr. Richard Clark reports

ATACAMA MINERALS CORP. ANNOUNCES CLOSING OF PREVIOUSLY ANNOUNCED $60 MILLION BOUGHT DEAL PRIVATE PLACEMENT

Atacama Minerals Corp. has closed its previously arranged financing by way of a private placement of 50 million subscription receipts at a price of $1.20 per subscription receipt for total gross proceeds of $60-million. The subscription receipts were sold by a syndicate of underwriters led by Cormark Securities Inc. and including BMO Capital Markets, GMP Securities L.P., and Scotia Capital Inc.

Each subscription receipt automatically converts to one common share of the company without payment of additional consideration upon satisfaction of certain escrow release conditions, including the completion of the acquisition of Sirocco Gold Inc. Completion of the acquisition is subject to approval of the disinterested shareholders of the company, which will be sought at a shareholders meeting to be held on Jan. 19, 2012.

The gross proceeds of the offering will be held in escrow pending satisfaction of the escrow release conditions. In the event that the escrow release conditions are not completed on or prior to Feb. 20, 2012, the finances from the offering, together with the accrued interest thereon, will be reimbursed to the holders of the subscription receipts and the subscription receipts will be cancelled.

The company intends to use the net proceeds of the offering for the acquisition and advancement of mineral opportunities in South America and West Africa and general corporate purposes.

In connection with the offering and upon satisfaction of the escrow release conditions, the underwriters will receive a cash commission equal to 6 per cent of the gross proceeds of the offering, together with their pro rata accrued interest thereon.

All securities issued pursuant to the offering will be subject to a four-month hold period that expires on April 21, 2012.

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