/NOT FOR DISTRIBUTION TO UNITED
STATES' NEWSWIRE SERVICES OR DISSEMINATION IN THE UNITED STATES/
TORONTO, July 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 the private placement of up to
C$500,000 principal amount
convertible debentures is expected to be completed within the next
30 days. Pursuant to the terms of the refinancing agreement
with CCM, the Company will refinance C$3,250,000 of existing indebtedness by issuing
US$1.5 million principal amount
senior secured notes and a C$1.5
million principal amount convertible debenture.
Concurrently with the completion of the refinancing transaction,
the Company intends to complete a private placement of up to
C$500,000 principal amount
convertible debentures. The convertible debentures will bear
interest of 10% per annum, mature April 1,
2018 and will be convertible at the holder's option at a
conversion price per share equal to the lesser of C$0.17 and the average of the closing prices for
the 30 trading days commencing June 29,
2015, being the date on which the Company's shares commenced
trading on a consolidated basis on the TSX Venture Exchange,
provided that the conversion price will not be less than
C$0.10 per share.
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 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 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.