Atlanta Gold reaches agreement on payment schedule for Clean Water Act penalty
TORONTO, Aug. 27, 2013 /CNW/ - Atlanta Gold Inc. (TSXV: ATG; OTCQX: ATLDF) (the "Company") announces that the Company's wholly-owned subsidiary, Atlanta Gold Corporation ("AGC") and all parties to the compliance litigation brought under the United States Federal Water Pollution Control Act ("Clean Water Act") have agreed to a payment plan whereby AGC will pay the previously imposed US$2 million penalty over a five year period.
The parties to the Clean Water Act litigation, including the U.S. Attorney as intervenor in the matter, have signed an Unopposed Motion for Consent Judgment and approved a proposed Consent Judgment for signature by the Court. The Motion and correlating Consent Judgment provide that AGC will pay the US$2 million penalty in quarterly installments over a five year period, with the installment amounts increasing on an annual basis. The unpaid balance of the penalty will bear interest at the rate of 0.1% per annum and will be secured by recording the Consent Judgment against AGC's Amity property located in Boise, Idaho and by a security interest, granted to the U.S Attorney's office, in four generators owned by AGC located on the Amity property. AGC has made an initial payment of US$50,000 pursuant to the provisions of the Motion.
The Motion and proposed Consent Judgment have not been filed, as the parties are awaiting an Order from the Court approving the U.S. Attorney's intervention in the case, to which all parties stipulated. Following the filing of the Motion and proposed Consent Judgment, it is anticipated that the Court will sign and enter the Consent Judgment to the payment plan.
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.
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 Court signing and entering the Consent Judgment in respect of payment by AGC of the penalty imposed under the Clean Water Act. Such are based upon assumptions, opinions and analysis that management believe to be reasonable and relevant, including that the Court will approve the U.S. Attorney's intervention in this matter and will approve the Consent Judgment to give effect to the payment plan. Forward-looking statements involve known and unknown risks, uncertainties and other factors that may cause actual results to differ materially from those expressed or implied in the forward-looking statements and accordingly, readers should not place undue reliance on those statements. Risks and uncertainties that may cause actual results to vary include, but are not limited to, the discretion of the Court to accept or reject the Consent Judgment on the terms proposed or to impose additional or amended terms and the Company's and AGC's limited financial resources; as well as other risks and uncertainties which are more fully described in the Company's annual and quarterly Management's Discussion and Analysis and in other Company filings with securities and regulatory authorities which are available 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 in the forward-looking statements and accordingly, readers should not place undue reliance on those statements. Readers are cautioned that the foregoing lists of risks, uncertainties, assumptions and other factors are not exhaustive. The forward-looking statements contained in this news release 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.
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SOURCE Atlanta Gold Inc.For further information:
Atlanta Gold Inc.:
Wm. Ernest Simmons
President and CEO
Atlanta Gold Inc.
Vice President and CFO
Telephone: (416) 777-0013
Fax: (416) 777-0014
CHF Investor Relations
Director of Operations
Telephone: (416) 868-1079 ext. 225
Fax: (416) 868-6198