RE:RE:RE:Basic questionATAC shareholders will also receive shares in a new exploration company ("Spinco") which will hold all of ATAC's rights and interests with respect to the Idaho Creek, Catch, Rosy and PIL projects (the "Spinco Assets") as well as ATAC's cash balance following completion of the Proposed Transaction.
Pursuant to the LOI, Hecla intends to make a C$2.0 million strategic investment (the "Strategic Investment") into Spinco in which Hecla will acquire (i) a right of first refusal ("ROFR") to acquire any or all of the Spinco Assets, and (ii) a number of units of Spinco (the "Spinco Units") such that it will own 19.9% of Spinco's issued and outstanding common shares following completion of the Strategic Investment. Each Spinco Unit will contain one common share of Spinco (a "Spinco Share") and one warrant (a "Spinco Warrant"). Each Spinco Warrant will entitle Hecla to purchase one additional Spinco Share for a period of five years at the same price as a Spinco Unit.