ATW Gold Corp.

ATW Gold Corp.

August 04, 2009 17:14 ET

ATW Announces a Non-Brokered Private Placement of $5,900,350

VANCOUVER, BRITISH COLUMBIA--(Marketwire - Aug. 4, 2009) - ATW Gold Corp. (TSX VENTURE:ATW) ("ATW" or the "Company") is pleased to announce that subject to the approval of the TSX Venture Exchange the Company intends to complete a non-brokered private placement offering to raise up to $5,900,350 CDN in funds (the "Offering"). The Offering is expected to consist of 11,132,736 Units for a purchase price of $0.53 per Unit, for aggregate gross proceeds of $5,900,350.

Each Unit consists of one common share and one half of one non-transferrable common share purchase warrant of the Company. Each full warrant entitles the holder thereof to acquire one common share of the Company at an exercise price of CDN $0.65 prior to 5:00pm on the two year anniversary of the closing date (the "Closing Date").

A finder's fee of 6% cash, and 8% finder's warrants (the "Finder's Warrants") will be paid on the total proceeds raised, subject to regulatory approval. The Finder's Warrants will have the same terms as the warrants of the Offering. All securities issued pursuant to the Private Placement will be subject to a four month hold period from the Closing Date.

Ernesto Echavarria, a businessman based in Culiacan Sinaloa, Mexico is the sole participant of this Offering. Mr. Echavarria has provided the Company with a completed subscription agreement together with a remittance of $5,900,350 which is being held in trust pending the closing of this Offering. A control position is not being created by this Offering; however, it will make Mr. Echavarria the largest shareholder of the Company.

Mr. Echavarria is a Certified Public Accountant, and has extensive experience both at the Executive and Board levels of large Corporations. He is a significant investor with major Corporations in Mexico including MegaCable Holding Sab. He is a controlling shareholder, Executive and Director of Franks Distributing which is a major international distributor of fruit and vegetable produce. As well, Mr. Echavarria is an investor and director of numerous other entities in the mining sector.

"We believe that Mr. Echavarria's strategic alliance with ATW recognizes the significant value of the Company's Burnakura and Gullewa projects. This investment by Mr. Echavarria substantially strengthens the Company's balance sheet and provides for the ongoing advancement of the projects," commented ATW Chairman, Graham Harris.


Graham Harris, Chairman

"This news release may contain forward-looking statements. Forward-looking statements address future events and conditions and therefore involve inherent risks and uncertainties. Actual results may differ materially from those currently anticipated in such statements."

"Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release."

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