VANCOUVER, April 11, 2018 /CNW/ - Atlantic Gold
Corporation (TSX-V: AGB) ("Atlantic" or the "Company")
announces that it has provided notice to all holders of the
Company's Debentures (as defined herein) that the Company intends
on prepaying the entire principal amount of the Debentures on
May 11, 2018 (the "Prepayment
Date") plus any accrued and unpaid interest up to such date, as
allowable under the terms of the Debentures.
On May 10, 2016, the Company
issued an aggregate principal amount of $13
million secured convertible debentures (the
"Debentures") to partially fund the initial capital costs
for its Moose River Consolidated Mine, which is now in commercial
operation.
Under the terms of the Debentures, the principal amount of the
Debentures is convertible at any time into common shares of
the Company at the holder's option, at a conversion price of
$0.60 per share, with accrued
interest also convertible into common shares of the Company at the
market price of the shares at the time of conversion. The
holders maintain this conversion right up to the Prepayment Date
and as the current share price is well in excess of the conversion
price, all holders have indicated that they intend to exercise this
conversion before the Prepayment date.
The Company has also received the conditional approval of the
TSX Venture Exchange to issue the additional common shares on
account of the accrued and unpaid interest payments in the event
that holders elect to convert any principal amounts outstanding
under the Debentures.
A total of up to 21,666,666 common shares of the Company are
issuable in the event that holders elect prior to the Prepayment
date to convert the aggregate principal amount of the outstanding
Debentures in full.
Further updates will be provided in due course.
On behalf of the Board of Directors,
Steven Dean
Chairman and Chief Executive Officer
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.
Wally Bucknell, Director of
Exploration to the Company and a Qualified Person as defined by
National Instrument 43-101 ("NI 43-101") has reviewed and approved
the contents of this news release.
About Atlantic:
Atlantic is a well-financed, growth-oriented gold development
group with a long term strategy to build a mid-tier gold production
company focused on manageable, executable projects in
mining-friendly jurisdictions.
Atlantic is growing gold production in Nova Scotia with its phase one open pit gold
mine, Moose River Consolidated, declaring commercial production in
March 2018 and phase two Life of Mine
Expansion ramping up gold production to + 200,000 ounces per
year.
Phase 1 Life of Mine production guidance for 2018 is between
82,000-90,000 oz. gold at All-In-Sustaining-Costs (AISC) between
$CAD675/oz.-$735/oz. (US$540-588/oz.) as stated in the Company's news
release (January 19, 2018).
The Phase 2 Life of Mine Expansion will have gold production
ramping up to + 200,000 ounces per annum while maintaining the
company's industry lowest quartile cash costs at all-in sustaining
cash cost (AISC) of CAD$692/oz. Au
(USD$555/oz. Au) as stated in the
Company's news release (January 29,
2018).
The company's planned future development of the region will
be based on a central processing facility concept with staged
integration of satellite deposits into the production schedule and
staged capital expenditures for expansion opportunities managed
with cashflow from operations at Touquoy and additional debt
capacity as a long term low cost gold producer.
The Phase 3 expansion drill programs recently completed at
the Fifteen Mile Stream and Cochrane
Hill deposits were designed to target extensions of
mineralization and define / upgrade inferred resources not included
in the 2018 PFS to measured and indicated categories.
A Phase 4 regional diamond drilling program commencing in
April 2018 will systematically
explore 45km of prospective structure targeting the Atlantic model
for disseminated style gold deposits amenable to open pit
mining.
Atlantic is committed to the highest standards of environmental
and social responsibility and continually invests in people and
technology to manage risks, maximize outcomes and returns to all
stakeholders.
Forward-Looking Statements:
This release contains certain "forward looking statements"
and certain "forward-looking information" as defined under
applicable Canadian and U.S. securities laws. Forward-looking
statements and information can generally be identified by the use
of forward-looking terminology such as "may", "will", "expect",
"intend", "estimate", "anticipate", "believe", "continue", "plans"
or similar terminology. Forward-looking statements and information
are not historical facts, are made as of the date of this press
release, and include, but are not limited to, statements regarding
discussions of future plans, guidance, projections, objectives,
estimates and forecasts and statements as to management's
expectations with respect to, among other things, the activities
contemplated in this news release and the timing and receipt of
requisite regulatory, and shareholder approvals in respect thereof.
Forward-looking statements in this news release include, without
limitation, statements related to proposed exploration and
development programs, grade and tonnage of material and resource
estimates. These forward looking statements involve numerous risks
and uncertainties and actual results may vary. Important factors
that may cause actual results to vary include without limitation,
the timing and receipt of certain approvals, changes in commodity
and power prices, changes in interest and currency exchange rates,
risks inherent in exploration estimates and results, timing and
success, inaccurate geological and metallurgical assumptions
(including with respect to the size, grade and recoverability of
mineral reserves and resources), changes in development or mining
plans due to changes in logistical, technical or other factors,
unanticipated operational difficulties (including failure of plant,
equipment or processes to operate in accordance with
specifications, cost escalation, unavailability of materials,
equipment and third party contractors, delays in the receipt of
government approvals, industrial disturbances or other job action,
and unanticipated events related to health, safety and
environmental matters), political risk, social unrest, and changes
in general economic conditions or conditions in the financial
markets. In making the forward-looking statements in this press
release, the Company has applied several material assumptions,
including without limitation, the assumptions that: (1) market
fundamentals will result in sustained gold demand and prices; (2)
the receipt of any necessary approvals and consents in connection
with the development of any properties; (3) the availability of
financing on suitable terms for the development, construction and
continued operation of any mineral properties; and (4) sustained
commodity prices such that any properties put into operation remain
economically viable. Information concerning mineral reserve and
mineral resource estimates also may be considered forward-looking
statements, as such information constitutes a prediction of what
mineralization might be found to be present if and when a project
is actually developed. Certain of the risks and assumptions are
described in more detail in the Company's audited financial
statements and MD&A for the year ended December 31, 2016 and for the quarter ended
September 30, 2017 on the SEDAR
website at www.sedar.com. The actual results or performance by the
Company could differ materially from those expressed in, or implied
by, any forward-looking statements relating to those matters.
Accordingly, no assurances can be given that any of the events
anticipated by the forward-looking statements will transpire or
occur, or if any of them do so, what impact they will have on the
results of operations or financial condition of the Company. Except
as required by law, the Company is under no obligation, and
expressly disclaim any obligation, to update, alter or otherwise
revise any forward-looking statement, whether written or oral, that
may be made from time to time, whether as a result of new
information, future events or otherwise, except as may be required
under applicable securities laws.
SOURCE Atlantic Gold Corporation
