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TORONTO, July 10, 2015 /CNW/ - Atlanta Gold Inc. (TSXV: ATG; OTC Pink: ATLDF) announces that completion of its previously announced refinancing transaction with Concept Capital Management Ltd. ("CCM") and the private placement of up to C$500,000 principal amount convertible debentures is expected to be completed within the next 30 days. Pursuant to the terms of the refinancing agreement with CCM, the Company will refinance C$3,250,000 of existing indebtedness by issuing US$1.5 million principal amount senior secured notes and a C$1.5 million principal amount convertible debenture. Concurrently with the completion of the refinancing transaction, the Company intends to complete a private placement of up to C$500,000 principal amount convertible debentures. The convertible debentures will bear interest of 10% per annum, mature April 1, 2018 and will be convertible at the holder's option at a conversion price per share equal to the lesser of C$0.17 and the average of the closing prices for the 30 trading days commencing June 29, 2015, being the date on which the Company's shares commenced trading on a consolidated basis on the TSX Venture Exchange, provided that the conversion price will not be less than C$0.10 per share.
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 issuance of the convertible debenture and senior secured notes to CCM and the completion of a private placement of additional convertible debentures. Such are based upon various assumptions and other factors that management believes to be reasonable, including that the Company will receive the final approvals of the Exchange and will enter into definitive documentation and complete the transactions in a timely manner. 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 receipt of requisite approvals from the Exchange; 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, Chief Financial Officer, Telephone: (416) 777-0013, Fax: (416) 777-0014, Email: [email protected]; CHF Investor Relations, Catherine D. Hume, Chief Executive Officer, Telephone: (416) 868-1079, Email: [email protected]