TORONTO,
June 18, 2014 /CNW/ - Atlanta Gold
Inc. (TSXV: ATG; OTCQX: ATLDF) (the "Company") announced
that its wholly-owned subsidiary, Atlanta Gold Corporation
("AGC"), has reached an agreement with Knife River
Corporation ("KRC") whereby KRC will contract mine on AGC's
behalf, certain patented lode mining claims known as the Neal
Property, located approximately 15 miles from Boise, Idaho. Daisy Mining & Land, LLP
leased the claims to KRC which then assigned key provisions of the
lease to AGC. AGC staked an additional seven contiguous
claims on public land that was open to mineral entry. Under the
terms of the agreement, KRC will mine and transport the mineralized
materials from the Neal Property approximately 23 miles, to KRC's
property located on Amyx Lane for crushing and delivery to AGC. AGC
will process the materials at the KRC property. In addition
to the contract mining and transportation costs, AGC will be
responsible for payment of a tonnage royalty of US$3 per dry ton of delivered tonnage and a 3%
net smelter return royalty payable to the owner of the Neal
Property.
Processing of the material from the Neal
Property will enable AGC to further test and improve upon the
processing equipment and procedures (described in the Company's
news release of June 10, 2014) prior
to implementing the process at AGC's Atlanta Project on the bulk
sample scheduled to be taken in 2014. The agreement with KRC will
also enable the processing of material from the Neal Property to
continue during the winter months when the Atlanta Project is
largely inaccessible.
To assist in funding the expenditures necessary
to acquire the processing equipment and commence processing, the
Company has reached an agreement with a corporation controlled by
Eric Sprott to borrow US$600,000. The loan is unsecured and
non-interest bearing and is to be repaid by delivery to the lender
of 1,000 troy ounces of gold (or the cash equivalent thereof)
payable in installments over an 18-month period. The loan
will be convertible at the lender's election at a conversion price
of C$0.05 during the initial 12
months and at C$0.10 per share
thereafter. The lender will also receive a 5-year option to
purchase, solely from gold produced from the Neal Property, up to
2,500 ounces of gold at US$1,400 per
ounce. The financing transaction is subject to the approval
of the TSX Venture Exchange.
"Having property that has access in all seasons with similar
metallurgy to Atlanta will advance
the research required to verify the Company's objective of
producing a mined product with the least environmental impact. This
is also an opportunity for the Boise operations to provide work for seasonal
employees to be extended to a longer period. It will reduce the
turnover and attract qualified and experienced personnel. The
network of all involved to achieve this opportunity has been
encouraging," said Ernest Simmons,
President and CEO of the Company.
About the Company
Atlanta Gold Inc. holds through its 100%
owned subsidiary, Atlanta Gold Corporation, leases, options or
ownership interests in its Atlanta
properties which comprise approximately 2,159 acres (8.74 square
kilometres) located 90 air kilometers east of Boise, in Elmore
County, Idaho. A long history of mining makes Atlanta very suitable for development of new
mining projects. The Company is focused on advancing its core
asset, Atlanta, towards mine
development and production.
Forward-Looking Information
This news release contains forward-looking
information and forward-looking statements (collectively
"forward-looking statements") within the meaning of applicable
securities laws, including with respect to the completion of the
loan financing, the acquisition of the processing equipment, the
completion of a bulk sample at the Atlanta Project and the successful application
of the process equipment and system to the mineralized material
removed from the Neal Property and the Atlanta Project, the
respective timing thereof and the impact on recruitment and
retention of personnel. Such are based upon assumptions, opinions
and analysis made by management in light of its experience, current
conditions and its expectations of future developments as well as
other factors that management believe to be reasonable and
relevant. These assumptions include those concerning the
receipt of the approval of the TSX Venture Exchange, the
achievement of recovery objectives, the generation of an additional
bulk sample, the completion of additional financings, the
availability of equipment and manpower, the ability to achieve
operating and cost estimates and general business and economic
conditions. Forward-looking statements involve known and
unknown risks, uncertainties and other factors that may cause
actual results to differ materially from those expressed or implied
in the forward-looking statements and accordingly, readers should
not place undue reliance on those statements. Risks and
uncertainties that may cause actual results to vary include, but
are not limited to, the Company's limited financial resources and
its ability to raise sufficient funds on a timely basis to fund the
capital and operating expenses necessary to carry out its planned
initiatives; the ability to achieve recovery objectives;
fluctuations in resource prices and currency exchange rates; the
speculative nature of mineral exploration and mining (including
with respect to the interpretation of geology, continuity, size and
grade estimates and the recoverability of resource estimates);
operational and technical difficulties which could increase
operating and/or capital costs; risks and hazards associated with
the business of mineral exploration, development and mining,
including environmental, health and safety hazards; changes in laws
or regulations and the risk of obtaining necessary consents,
licenses and permits; changes in general economic conditions and in
the financial markets; as well as other risks and uncertainties
which are more fully described in the Company's annual and
quarterly Management's Discussion and Analysis and in other Company
filings with securities and regulatory authorities which are
available at www.sedar.com. Should one or more risks and
uncertainties materialize or should any assumptions prove
incorrect, then actual results could vary materially from those
expressed or implied in the forward-looking statements and
accordingly, readers should not place undue reliance on those
statements. Readers are cautioned that the foregoing lists of
risks, uncertainties, assumptions and other factors are not
exhaustive. The forward-looking statements contained in this
news release are made as of the date hereof and the Company
undertakes no obligation to update publicly or revise any
forward-looking statements contained herein or in any other
documents filed with securities regulatory authorities, whether as
a result of new information, future events or otherwise, except in
accordance with applicable securities laws.
To receive Company news via email, contact jeanny@chfir.com and
mention "Atlanta Gold News" in the subject line.
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.
SOURCE Atlanta Gold Inc.