/NOT FOR DISTRIBUTION TO UNITED
STATES' NEWSWIRE SERVICES OR DISSEMINATION IN THE UNITED STATES/
TORONTO, Aug. 26, 2014 /CNW/ - Atlanta Gold Inc.
(TSXV: ATG; OTCQX: ATLDF) announces that it has reached an
agreement to amend the terms of its outstanding US$4 million
principal amount senior secured notes ("Notes") to among
other things, extend the time for repayment of the Notes by twelve
months.
The Notes, which may be amended with the approval of the
majority holders of the Notes, were initially issued in August
2013. The majority holders of the Notes and the Company have
agreed to amend the Notes to extend the repayment dates by one
year, such that the principal amount of the Notes, amortized at
25%, 35% and 40%, will be repayable in cash installments on
August 31st of 2015, 2016
and 2017, respectively. The interest accrued on the Notes to
August 31, 2014 will be satisfied by
the issuance of common shares of the Company, at the rate of one
common share for each C$0.05 of
accrued interest, which will result in the issuance of 9,006,692
common shares, representing approximately 3.5% of the Company's
currently outstanding shares.
At the time of issuance, purchasers of the Notes also received
warrants exercisable at C$0.10 per
share to purchase an aggregate of 4,000,000 common shares of the
Company until August 31, 2016, and
options, exercisable until August 31,
2016, to purchase 95 troy ounces of gold at US$1,125 per ounce for each US$100,000 principal amount of Notes
purchased. Holders of the warrants who consent thereto will
have the expiry date of their warrants extended to August 31, 2017. The Company retains the
right to accelerate the expiry date of the warrants if the closing
price of the Company's common shares on the TSX Venture Exchange
exceeds C$0.25 for 20 consecutive
days on which the Company's shares trade. Holders of gold
options who consent thereto will have the number of ounces
purchasable under their options increased by 10% and will have the
expiry date of their gold options extended to August 31, 2017. Assuming that all holders
of gold options agree to the amendment, the aggregate number of
ounces subject to the gold options will increase from 3,800 to
4,180 troy ounces.
Two directors of the Company hold, in aggregate, US$500,000 of the Notes, warrants to purchase
500,000 common shares and gold options to purchase 475 troy ounces
of gold.
The proposed amendments, including the issuance of shares in
satisfaction of accrued interest and the extension of the warrants'
expiry date, are subject to the approval of the TSX Venture
Exchange.
The Company also announced that the holder of the Company's
subordinated convertible debenture due December 15, 2016 in the principal amount of
C$3 million has asked the Company to
redeem the debenture on December 15,
2014, in accordance with the debenture's early redemption
provisions. The debenture is subordinate and junior in right of
payment to the Company's 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.
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 shares in satisfaction of interest and the amendments to the
terms of the warrants, gold options and Notes. Such are based upon
the assumption that the Company will receive the requisite
approvals of the TSX Venture Exchange, and are made as of the date
hereof. 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.