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TORONTO, June 11, 2015 /CNW/ - Atlanta Gold Inc. (the "Company") (TSXV: ATG; OTC Pink: ATLDF) announces that its wholly-owned subsidiary, Atlanta Gold Corporation ("AGC"), has reached a management agreement with Mineral Point, LLC ("Mineral Point"), the general partner of Neal Development, LP (the "Partnership"), to begin exploration and test processing of surface mineralized material to be obtained from the Neal Property. The Partnership, a limited partnership formed under the Idaho Uniform Limited Partnership Act, as amended, was created to explore and develop AGC's Neal Property (See the Company's news release of April 7, 2015). The Partnership has commenced work on the Neal Property and exploration and test processing is expected to commence by mid-June 2015.
Mineral Point is the general partner of the Partnership and holds one hundred and two (102) units of the maximum two hundred (200) units to be issued in the Partnership, with the limited partners to hold the remaining units. Certain insiders of the Company and other investors have expressed interest in subscribing for fifty-six (56) units for the total gross proceeds of US$1,400,000. A company controlled by Mr. Eric Sprott, 2176423 Ontario Ltd., has signed the subscription agreement to subscribe for forty (40) units for gross proceeds of US$1,000,000 and advanced the funds. It is expected that up to an additional US$1,050,000 will be raised by the Partnership later in the second quarter of 2015 by the sale to qualified investors of up to forty-two (42) additional units at US$25,000 per unit.
Wm. Ernest Simmons, President and CEO of the Company stated, "This is an exciting development for Atlanta Gold Inc.'s shareholders, who have been patiently awaiting news about advancing the property development without dilution or debt. With a processing medium of water and gravity, recent test results by AGC and Knife River Corporation demonstrated recoveries greater than 80% of total gold - without the use of any chemicals. We tested and used centrifugal concentrators in series with a slurry feed consisting of water and minus ¼ inch (2mm) mesh solids for optimal recovery from four sources of material. The exploration and bulk sampling at Neal and the further processing research and development will advance AGC's knowledge of the recovery process medium to be applied at the Atlanta Project, where bulk sampling is expected to be undertaken later in 2015."
The securities of the Partnership referred to herein have not been and will not be registered under the United States Securities Act of 1933, as amended, or any state securities laws and unless so registered, may not be offered or sold in the United States or to U.S. persons except pursuant to an exemption from such registration requirements. This news release shall not constitute an offer to sell or the solicitation of an offer to buy any securities, nor shall there be any offer or sale of securities in any jurisdiction in which such offer, solicitation or sale would be unlawful.
About the Neal Property:
The Neal Property is located 15 miles southeast of Boise, Idaho, in Elmore County and 45 miles southwest of the Atlanta Project within the same Trans-Atlanta-Challis fault alignment. In June 2014, Knife River assigned certain of its rights and obligations under its five-year lease with the owner of the Neal Property, Daisy Mining and Land, LLP, to AGC. AGC staked an additional seven contiguous claims on Public Land that was open to mineral entry. Subsequently AGC assigned its rights to the Partnership.
About Knife River Corporation:
Knife River is one of the largest construction materials and contracting companies in the United States, providing materials and contract services in the western, central and southern U.S.A. Knife River will contract the production of the bulk sample and transport the mineralized material from the Neal Property to a location where it will be processed by AGC as the contractor responsible for the processing and recovery of desired metals harvested by the Partnership.
Information of a technical nature in this news release has been reviewed by Eric J. Berentsen, Vice President, Atlanta Gold Corporation, who is a designated "Qualified Person" under NI 43-101. Mr. Berentsen is a Registered Member of the Society for Mining, Metallurgy, and Exploration, Inc.
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 subscriptions for additional units of the Partnership, the commencement of exploration and development at Neal and the application of advancements developed at Neal to the Atlanta Project. Such are based upon various assumptions and other factors that management believes to be reasonable, including that adequate funding will be available on a timely basis and that requisite permits are obtained 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 of the Partnership to complete the financing on acceptable terms; receipt of requisite governmental approvals; 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.
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SOURCE Atlanta Gold Inc.
For further information: Atlanta Gold Inc., Wm. Ernest Simmons, President and CEO, Telephone: (208) 424-3343, Fax: (208) 338-6513, Email: firstname.lastname@example.org; Atlanta Gold Inc., Peili Miao, Chief Financial Officer, Telephone: (416) 777-0013, Fax: (416) 777-0014, Email: email@example.com; CHF Investor Relations, Catherine D. Hume, Chief Executive Officer, Telephone: (416) 868-1079, Email: firstname.lastname@example.org