Atocha closes private placements for $460,000

2009-12-23 15:31 ET - News Release

Mr. A. Salman Jamal reports

ATOCHA ANNOUNCES CLOSINGS OF PRIVATE PLACEMENTS

Atocha Resources Inc. has closed the two non-brokered private placements announced in Stockwatch in the company's Dec. 15, 2009, news release.

The first of these placements involved the sale by the company of 2.5 million units at a price of 16 cents per unit for proceeds of $400,000. Each unit consists of one common share of the company issued on a flow-through basis and one non-flow-through warrant exercisable for an additional common share at 20 cents in the first year and 25 cents in the second year. The proceeds of the placement will be used for exploration work on Atocha's Atkinson (Detour Lake) project in Ontario. A finder's fee of $17,500 in cash was paid to Limited Market Dealer Inc. in connection with this placement, together with non-transferable broker warrants entitling the holder to acquire 218,750 units exercisable for 16 cents per unit, each unit consisting of one common share and one warrant having the same terms as the warrants sold in the placement. The shares and warrants sold in the placement and any shares issuable upon the exercise of the placement warrants (as well as any shares and warrants issued upon the exercise of the broker warrants or shares issuable upon the exercise of such underlying warrants) are subject to a hold period and must not trade before April 23, 2010.

The company also closed a non-brokered private placement of 400,000 units at a price of 15 cents per unit for total gross proceeds of $60,000. Each unit sold in this placement consists of one common share of the company and one warrant exercisable for an additional common share at 20 cents in the first year and 25 cents in the second year. The proceeds of this placement will be used for general working capital. A finder's fee of $4,500 in cash was paid in connection with this placement, together with non-transferable broker warrants entitling the holder to acquire 30,000 common shares at a price of 15 cents per share for a period of two years. The shares issued in the private placement and any shares issuable upon the exercise of the broker warrants are subject to a hold period and must not trade before April 23, 2010.

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