TORONTO, May 12, 2015 /CNW/ - Atlanta Gold Inc.
(TSXV: ATG; OTC Pink: ATLDF) announces that it has issued a
Senior Secured Note in the principal amount of US$600,000 (the "Note") to Concept Capital
Management Ltd. ("CCM"). The Note has the same terms
and conditions as the Company's outstanding Senior Secured Notes
(the "Senior Notes", and together with the Note, the
"Notes") in the principal amount of US$4 million which were issued in August 2013.
The Company has also received the approval from a majority of
holders of Senior Notes agreeing to extend the maturity date of the
Notes by one year to August 31, 2018
and to amend the principal repayment dates so that the Notes will
be repayable at the rate of 25%, 35% and 40% on August 31st of 2016, 2017 and 2018,
respectively. The Notes bear interest at 10% per annum and are
secured by the limited recourse guarantee of the Company's
subsidiary, Atlanta Gold Corporation ("AGC"), and by a first
mortgage of AGC's interest in its Atlanta Project.
CCM also received an option, exercisable until August 31, 2018, to purchase an aggregate of 627
troy ounces of gold at US$1,100 per
ounce (being 104.5 troy ounces for each US$100,000 principal amount Note), with the
option vesting at the rate of 25%, 35% and 40% on August 31, 2016, 2017 and 2018, respectively. The
Company's outstanding gold options previously issued with the Notes
in August 2013 will be amended to
have the same terms and conditions as the gold options being issued
to CCM.
The US$600,000 received by the
Company from the issuances of the Note, is sufficient for, among
other things, its commitment to the Company's auditors, which will
allow the auditors to complete audit as anticipated prior to the
end of May.
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
June 2014, Knife River assigned
certain of its rights and obligations under its lease with the
owner of the Neal Property to AGC. AGC staked an additional seven
contiguous claims on public land that was open to mineral
entry.
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 the filing of its annual financial statements and
related documentation. Such are based upon various
assumptions and other factors that management believes to be
reasonable, including that the Company will reach agreement with
potential investors 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 to conclude in a timely manner a financing on terms
acceptable to the Company; 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.
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.
