TORONTO, March 10, 2015 /CNW/ - Atlanta Gold Inc. (TSXV: ATG; OTC Pink: ATLDF) announces that Concept Capital Management Ltd. ("CCM"), the holder of the Company's C$3 million 6% convertible debenture due December 15, 2016, has agreed to extend the period of forbearance under the previously entered into forbearance agreement with the Company (see the Company's news releases of December 22, 2014 and February 2, 2015) until March 31, 2015. During this period, CCM has agreed to refrain from exercising any remedies it may have under the debenture and related documents and the Company and CCM have agreed to use their reasonable best efforts to negotiate terms to refinance the debenture. CCM had previously requested that the debenture be redeemed in accordance with the debenture's early redemption provisions. Completion of any refinancing transaction will be subject to the approval of the TSX Venture Exchange.
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.
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 refinancing of the Company's debenture. Such are based upon various assumptions and other factors that management believes to be reasonable, including that the Company will reach agreement with CCM and receive the requisite approvals of the TSX Venture Exchange 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 to conclude in a timely manner a refinancing agreement on terms acceptable to the Company and to the holders of the Company's senior secured notes, the receipt of all requisite approvals to the refinancing from the TSX Venture Exchange; the ability of the Company to complete additional financings on acceptable terms; 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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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, Telephone: (208)-424-3343, Fax: (208) 338-6513, Email: [email protected]; Atlanta Gold Inc., Peili Miao, CFO, Telephone: (416) 777-0013, Fax: (416) 777-0014, Email: [email protected]; CHF Investor Relations, Catherine D. Hume, CEO, Telephone: (416) 868-1079, Fax: (416) 868-6198, Email: [email protected]