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| March 18, 2010 --- Vol. 04, No. 11 | March 2010
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Yukon Territory
GOLD – Underworld Resources Inc. March 16 said it has entered into a support agreement with Kinross Gold Corp. in which the major will offer to acquire 100 percent of Underword’s outstanding common shares not already owned by Kinross for stock and cash valued at C$135.2 million. Kinross already owns 8.5 percent of Underworld’s shares (on a fully-diluted basis). The junior is the owner of the highly prospective White gold property which hosts a substantial new gold discovery 95 kilometers south of Dawson City in central Yukon Territory. The major tendered a friendly takeover bid for Underworld March 11, offering 0.141 of a Kinross common share, plus C1 cent in cash for every outstanding common share of the junior’s stock, and Underworld’s management has agreed to support the offer. In addition, Underworld’s directors and senior management entered into lock-up agreements with Kinross under which they have agreed to tender their common shares to the offer. Full details of the offer will be included in a formal offer and take-over bid circular expected to be mailed to Underworld shareholders shortly. The offer will be open for acceptance for at least 35 days. The offer will be subject to several conditions, including acceptance of the offer by the holders of common shares (including any issuable on exercise of options or warrants) which, together with the common shares and warrants directly or indirectly owned by Kinross, constitutes at least two-thirds of the outstanding common shares (calculated on a fully diluted basis) and the receipt of all necessary regulatory approvals. It is expected that if Kinross acquires at least two-thirds of the outstanding common shares, Kinross will take steps to acquire all outstanding common shares not acquired pursuant to the offer. If 100 percent of the common shares are acquired, Kinross expects to issue about 6.8 million common shares pursuant to the transaction (based on the fully-diluted share capital of Underworld), representing about 1.0 percent of Kinross’ current outstanding common shares.
FINANCE – Atac Resources Ltd. March 18 said the closing price of its shares has been C$1.40 or greater for the 10 consecutive trading days, ending March 17, which means any of the 4,552,936 share purchase warrants it issued Nov. 26, and Dec. 8, in connection with the closing of a private placement will now be subject to an accelerated exercise term, such that holders of these warrants will have until the close of business April 19 to exercise the warrants, following which they will expire. A total of 3,969,444 of the warrants are exercisable at C$1.25 per share, with the remaining 583,492 warrants being exercisable at C95 cents per share. None of the warrants have yet been exercised, including warrants issued to various finders.
MANAGEMENT – Atac Resources Ltd. board of directors appointed Douglas O. Goss chairman, effective March 15. Goss, a lawyer in Edmonton, Alb., specializes in mergers and acquisitions and corporate financing transactions. He has served on the boards of or as counsel to numerous private and public corporations in Canada, and is currently general counsel to Premium Brands Holdings Corp. and chairman of the board of governors of the Northern Alberta Institute of Technology. Atac owns the promising Rau gold project, which hosts Nevada-style gold mineralization previously unseen in Yukon Territory.
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