TORONTO, Dec. 19, 2012 /CNW/ - Atlanta Gold Inc. (TSXV: ATG; OTCQX: ATLDF) announces that it has completed its previously announced $870,000 private
placement offering of Units (see news releases of November 5 and
December 11, 2012). On November 9th, the Company had issued 12,120,000 Units at a price of $0.05 per Unit
for gross proceeds of $606,000 and today issued an additional 5,280,000
Units for additional proceeds of $264,000, for aggregate gross proceeds
of $870,000. Each Unit consisted of one common share and one common
share purchase warrant. Each warrant is exercisable for a period of 24
months from closing of the offering and will entitle the holder to
purchase one additional common share at $0.10 for the initial 12 months
from closing and at $0.15 per share thereafter. The Company has 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 $0.20 for 20 consecutive days on which the Company's shares
trade. Net proceeds from the offering will be used to reduce
indebtedness and for general working capital purposes.
Given that many junior companies are having difficulty accessing
financing, management is pleased to have an oversubscribed Offering
which is a testament to investor support for the Atlanta project.
The Company paid cash finder's fees of $4,200 and issued 84,000
compensation options in connection with the second closing. Each
compensation option entitles the holder to purchase one common share of
the Company at a price of $0.10 per share for one year.
All securities issued on the second closing will be subject to a
four-month statutory hold period, which will expire April 20, 2013.
Insiders of the Company acquired 230,000 Units, representing 4.4% of the
Units issued on the second closing.
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 kilometers) 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.
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.
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
Senior Account Manager
Telephone: (416) 868-1079 ext 239
Fax: (416) 868-6198