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TORONTO, Sept. 28 /CNW/ - Atlanta Gold Inc. (TSX: ATG) announces that it has purchased a 1% net smelter return royalty on production from the Atlanta gold mine which is currently under development, thereby further optimizing the economics of the project. The Company continues to make progress expanding and upgrading its resource base while advancing the Atlanta gold project to production.
A 2% royalty was granted to Canadian American Mining Company LLC ("CAMC") when the Company acquired the remaining 20% participating interest in the property from CAMC in 2003. The royalty is on all minerals produced on the property which consists of 1,888.75 acres (2.95 square miles) of private and public properties which are owned, leased or optioned by the Company.
The Company purchased one-half (1%) of CAMC's original 2% royalty in exchange for the issuance of 5,750,000 common shares and total cash payments of US$200,000 to be paid over 15 months. The shares will be subject to a four month statutory hold period.
"The purchase of the royalty is another positive step in the Company's strategy to optimize the economics of the Atlanta gold mine. With the significant progress being made in exploration and advancing the project toward production, we felt it was time to deal with this royalty which covered the entire property plus an area of interest and had been outstanding for over six years," said Bill Baird, President and CEO of Atlanta.
About the Company
Atlanta Gold Inc. (TSX: ATG) holds through its 100% owned subsidiary, Atlanta Gold Corporation, leases, options or ownership interests in its Atlanta properties which comprise approximately 2,197 acres located 65 miles 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 and on acquiring, exploring and developing other attractive gold projects.
This news release contains forward-looking information and forward-looking statements within the meaning of applicable securities laws. All statements, other than statements of historical fact, are forward-looking statements. We use words such as "may", "will", "should", "anticipate", "plan", "expect", "believe", "estimate" and similar terminology to identify forward looking information and statements, including with respect to the expansion and upgrading of the Atlanta Project's resource base. Such are based upon assumptions, estimates, opinions and analysis made by management in light of its experience, current conditions and its expectations of future developments as well as other factors which it believes to be reasonable and relevant. Forward looking information and statements involve known and unknown risks, uncertainties and other factors that may cause our actual results to differ materially from those expressed or implied in the forward looking information and 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 speculative nature of mineral exploration, development and mining (including with respect to size, grade and recoverability of mineral reserves and resources); operational and technical difficulties; risks and hazards associated with the business of mineral exploration, development and mining, including environmental hazards; government action or delays in the receipt of governmental approvals, permits and licenses; changes in resource prices and fluctuations in currency exchange rates; the Company's limited financial resources and the availability of financing alternatives; contests to the title of Company property and changes in general economic conditions or conditions in the financial markets; as well as other risks and uncertainties which are more fully described in the Company's annual information form on Form 20-F, 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.
Readers are cautioned that the foregoing lists of risks, uncertainties 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 information or statements contained herein or in any other documents filed with Canadian and U.S. securities regulatory authorities, whether as a result of new information, future events or otherwise, except in accordance with applicable securities laws.
SOURCE Atlanta Gold Inc.
For further information: For further information: Atlanta Gold Inc.: Bill Baird, President and CEO, Telephone: (416) 777-0013, Fax: (416) 777-0014, E-mail: firstname.lastname@example.org; CHF Investor Relations: Christopher Haldane, Account Manager, Telephone: (416) 868-1079, extension 237, Fax: (416) 868-6198, E-mail: email@example.com