/NOT FOR DISTRIBUTION TO UNITED
STATES' NEWSWIRE SERVICES OR DISSEMINATION IN THE UNITED STATES/
TORONTO, June 11, 2015 /CNW/ - Atlanta Gold
Inc. (the "Company") (TSXV: ATG; OTC Pink:
ATLDF) announces that its wholly-owned subsidiary, Atlanta Gold
Corporation ("AGC"), has reached a management agreement with
Mineral Point, LLC ("Mineral Point"), the general partner of
Neal Development, LP (the "Partnership"), to begin
exploration and test processing of surface mineralized material to
be obtained from the Neal Property. The Partnership, a limited
partnership formed under the Idaho Uniform Limited Partnership Act,
as amended, was created to explore and develop AGC's Neal Property
(See the Company's news release of April
7, 2015). The Partnership has commenced work on the
Neal Property and exploration and test processing is expected to
commence by mid-June 2015.
Mineral Point is the general partner of the Partnership and
holds one hundred and two (102) units of the maximum two hundred
(200) units to be issued in the Partnership, with the limited
partners to hold the remaining units. Certain insiders of the
Company and other investors have expressed interest in subscribing
for fifty-six (56) units for the total gross proceeds of
US$1,400,000. A company controlled by
Mr. Eric Sprott, 2176423 Ontario
Ltd., has signed the subscription agreement to subscribe for forty
(40) units for gross proceeds of US$1,000,000 and advanced the funds. It is
expected that up to an additional US$1,050,000 will be raised by the Partnership
later in the second quarter of 2015 by the sale to qualified
investors of up to forty-two (42) additional units at US$25,000 per unit.
Wm. Ernest Simmons, President and
CEO of the Company stated, "This is an exciting development for
Atlanta Gold Inc.'s shareholders, who have been patiently awaiting
news about advancing the property development without dilution or
debt. With a processing medium of water and gravity, recent test
results by AGC and Knife River Corporation demonstrated recoveries
greater than 80% of total gold - without the use of any chemicals.
We tested and used centrifugal concentrators in series with a
slurry feed consisting of water and minus ΒΌ inch (2mm) mesh solids
for optimal recovery from four sources of material. The exploration
and bulk sampling at Neal and the further processing research and
development will advance AGC's knowledge of the recovery process
medium to be applied at the Atlanta Project, where bulk sampling is
expected to be undertaken later in 2015."
The securities of the Partnership referred to herein have not
been and will not be registered under the United States Securities
Act of 1933, as amended, or any state securities laws and unless so
registered, may not be offered or sold in the United States or to U.S. persons except
pursuant to an exemption from such registration requirements. This
news release shall not constitute an offer to sell or the
solicitation of an offer to buy any securities, nor shall there be
any offer or sale of securities in any jurisdiction in which such
offer, solicitation or sale would be unlawful.
About the Neal Property:
The Neal Property is located
15 miles southeast of Boise,
Idaho, in Elmore County and
45 miles southwest of the Atlanta Project within the same
Trans-Atlanta-Challis fault alignment. In June 2014, Knife River assigned certain of its
rights and obligations under its five-year lease with the owner of
the Neal Property, Daisy Mining and Land, LLP, to AGC. AGC staked
an additional seven contiguous claims on Public Land that was open
to mineral entry. Subsequently AGC assigned its rights to the
Partnership.
About Knife River Corporation:
Knife River is one of
the largest construction materials and contracting companies in
the United States, providing
materials and contract services in the western, central and
southern U.S.A. Knife River will
contract the production of the bulk sample and transport the
mineralized material from the Neal Property to a location where it
will be processed by AGC as the contractor responsible for the
processing and recovery of desired metals harvested by the
Partnership.
Qualified Person
Information of a technical nature in this news release has been
reviewed by Eric J. Berentsen, Vice
President, Atlanta Gold Corporation, who is a designated "Qualified
Person" under NI 43-101. Mr. Berentsen is a Registered Member
of the Society for Mining, Metallurgy, and Exploration, Inc.
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 with
respect to the completion of subscriptions for additional units of
the Partnership, the commencement of exploration and development at
Neal and the application of advancements developed at Neal to the
Atlanta Project. Such are based upon various assumptions and other
factors that management believes to be reasonable, including that
adequate funding will be available on a timely basis and that
requisite permits are obtained on a timely basis. Forward-looking
statements involve known and unknown risks, uncertainties and other
factors that may cause our actual results to differ materially from
those expressed or implied by the forward-looking statements. Risks
and uncertainties that may cause actual results to vary include the
ability of the Partnership to complete the financing on acceptable
terms; receipt of requisite governmental approvals; fluctuations in
the gold price and currency exchange rates; 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 interim management's discussion and analysis
and other filings by the Company with the securities regulatory
authorities, which are available under the Company's profile
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 by the forward-looking statements and
accordingly, readers should not place undue reliance on the
forward-looking statements. Readers are cautioned that the
foregoing lists of risks, uncertainties, assumptions and other
factors are not exhaustive. The forward-looking statements
contained herein 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 info@atgoldinc.com
and mention "Atlanta Gold News" in the subject line.
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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.