PLANTATION, Fla., June 12, 2020 (GLOBE NEWSWIRE) -- Atacama Resources International, Inc. (OTC: ACRL) (“Atacama”) or (the “Company”) is pleased to provide the following update with respect to its business.
“I want to take this opportunity to provide our shareholders with an update on our business.
The core of our current management team officially took control of the Company in early September 2019. Since then we have added top-notch talent to our team (please note that, for personal reasons, Stephen Spivak has resigned from our board of directors, but we are in the process of seeking his replacement), completed a considerable amount of exploration on one of our assets, obtained an option to acquire a promising gold bearing property (the Tannahill property), and worked on a number of very time-consuming internal housecleaning matters that pre-dated our arrival. I am very proud of our Atacama team and what we have accomplished to date.
The Atacama team has been working non-stop to improve the Company. Highlighting our commitment, to date, many key management personnel and board members have yet to receive a cent of cash consideration for what has essentially amounted to full-time work.
Unfortunately, the cease trade order that was issued by the Alberta Securities Commission against the Company in July 2018 has negatively impacted our ability to execute on growth prospects and normal day-to-day business operations. As a result of this cease trade order, we are prohibited from selling securities (including shares of common stock) to raise capital. Legal and other costs associated with remedying the cease trade order (as well as other miscellaneous operating expenses) are being advanced out of pocket by key team members. We are committed to this Company and doing everything possible to see it succeed.
Ultimately, a successful resolution to the cease trade order is very important to the future success of the Company. We have retained top securities and litigation counsel to guide us through the process but cannot provide any sort of timelines or guarantees of outcomes.
An annual meeting was recently held by written consent where our directors were re-elected and our authorized common share capital was increased to 2.9B (to accommodate convertible securities and potential future transactions). In addition, we clarified the terms of our series B preferred shares. The terms of the Series B preferred shares were ambiguous, implying that when converting the Series B preferred shares to common shares, the holder would maintain a ratio of 500,000 shares of common stock for each one share of Series B preferred stock. We sought to provide clarity and per the advice of our legal counsel, each one series B preferred share is convertible to 500,000 common shares. There are no anti-dilutive properties attached to these shares. In essence, the Series B preferred shares will be adjusted to reflect any potential recapitalization (such as forward or reverse stock splits) in the same manner as our common shares. In addition, the Series B preferred stock will automatically convert into common stock, if the Board of Directors believes it is in the best interest of the shareholders, upon certain material substantive events. We feel that these revised terms are equitable and fair to our common shareholders.
In terms of our current priorities for exploration, our Tannahill, cobalt, and Atacama 3 properties are at the top of the list. The Tannahill property is the most advanced in terms past drilling and geophysical work while our cobalt and Atacama 3 properties are strategically located and have provided some interesting results warranting further exploration. Furthermore, it is our hope (but again, there are no guarantees) that the cease trade order issue will be sorted in a reasonable amount of time allowing us to raise funds and pursue some strategic and high-quality property acquisitions.
With respect to our Atacama 3 property, we completed some geophysical and surface geological work over the fall and into the early winter. COVID-19, cease trade order, and funding considerations aside, the next step would see additional surface geological work, excavating, and trenching. This is a largely unexplored area and our team needs to further assess the property prior to carrying out any drilling.
Regarding our Tannahill property, it has been drilled in the past and contains some known gold quantities. Line-cutting was completed in the early winter, and COVID-19, cease trade order, and funding considerations aside, the next step on the Tannahill property would see continued and further compilation of historical work completed, the identification of old drill holes, the examination of old core samples, and IP testing along with some surface work and excavating. Again, our technical team believes, but obviously cannot provide any guarantees, that the Tannahill property may hold some untapped potential.
Our management team is committed to providing honest and upfront communications with our shareholders. As outlined herein, we have been working hard for our shareholders and remain committed to this Company. With a strong team and some quality assets we are focused on long-term success built upon substance and results. We thank you for your support and hope this has answered many of your questions”.
President and Chief Executive Officer, Atacama Resources International, Inc.
About Atacama Resources International (www.acrlintl.com)
Atacama Resources International is a publicly traded OTC Pink company with significant mining claims in the greater Kirkland Lake area of Northern Ontario. Metals and minerals under potential exploration include gold, silver, copper, graphite and cobalt.
Forward Looking Statements
Certain information set forth in this news announcement may contain forward-looking statements that involve substantial known and unknown risks and uncertainties. These forward-looking statements are subject to numerous risks and uncertainties, certain of which are beyond the control of Atacama Resources International, Inc.. Such forward-looking statements are based on current expectations, estimates and projections about the Company’s industry, management beliefs and certain assumptions made by its management. Readers are cautioned that the assumptions used in the preparation of such information, although considered reasonable at the time of preparation, may prove to be imprecise and, as such, undue reliance should not be placed on forward-looking statements. Information concerning factors that could cause the Company's actual results to differ materially from those contained in these forward-looking statements can be found in the Company's periodic reports as and when filed on the OTC Markets . Unless required by law, the Company undertakes no obligation to update publicly any forward-looking statements, whether as a result of new information, future events, or otherwise to reflect future events or circumstances or reflect the occurrence of unanticipated events.
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