/NOT FOR DISTRIBUTION TO UNITED
STATES' NEWSWIRE SERVICES OR DISSEMINATION IN THE UNITED STATES/
TORONTO, Aug. 10, 2015 /CNW/ - Atlanta Gold
Inc. (TSXV: ATG; OTC Pink: ATLDF) announces that completion of its
previously announced refinancing transaction with Concept Capital
Management Ltd. ("CCM") and concurrent private placement of
convertible debentures is expected to be completed within the next
30 days. The private placement has been increased in size to
up to C$550,000 principal amount
convertible debentures. The convertible debentures will bear
interest of 10% per annum, mature April 1,
2018, be convertible at the holder's option at a conversion
price equal to C$0.10 per share and
will be secured by a mortgage on the Atlanta Project. Under the
terms of the refinancing agreement previously entered into with
CCM, the Company will refinance C$3,250,000 of existing indebtedness by issuing
to CCM a C$1.5 million principal
amount convertible debenture and US$1.5
million principal amount senior secured notes.
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.
The Company is also focused on advancing its exploration and
processing methods on the Neal Property, which is located
approximately 15 miles from Boise,
Idaho and comprises approximately 192 acres (0.78 square
kilometres). The Neal Property's geology is similar to that of the
Atlanta Project and it provides the Company with all-season access
to further refine the processing equipment and procedures. In July
of 2015, Knife River assigned its rights and obligations
under its lease with the owner of the Neal Property to AGC. AGC
entered into a five year lease with the owners of the Neal Property
and staked an additional seven contiguous claims on public land
that was open to mineral entry. Exploration activity commenced on
July 13, 2015.
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 issuance
of the convertible debenture and senior secured notes to CCM and
the completion of a private placement of additional convertible
debentures. Such are based upon various assumptions and other
factors that management believes to be reasonable, including that
the Company will receive the final approvals of the Exchange and
will enter into definitive documentation and complete the
transactions in a timely manner. 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
receipt of requisite approvals from the TSX Venture Exchange;
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.
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.