Toronto, Ontario December 16, 2015 – Atlanta Gold Inc. (TSXV: ATG; OTC Pink: ATLDF) announces that it has completed an initial private placement of 2,950,000 common shares to Jipangu Inc. for gross proceeds of C$203,550. Proceeds from the placement will be used for general working capital purposes. The common shares are subject to a four-month statutory hold period, which will expire April 17, 2016.
Jipangu Inc. has also agreed to subscribe for and purchase an additional 1,750,000 common shares of the Company at $0.069 per share, subject to receipt of the approval of the TSX Venture Exchange. Upon completion of the subsequent private placement, Jipangu Inc. will own approximately 15% of the Company’s outstanding shares.
About the Company
Atlanta Gold Inc. holds through its 100% owned subsidiary, AGC, leases, options or ownership interests in its Atlanta properties which comprise approximately 2,159 acres (8.74 square kilometres) located 90 air kilometres 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; in that, there are northeasterly-trending shear zones in granodioritic host rocks. The Neal Property provides the Company with all-season access to further refine the processing equipment and procedures. AGC holds a five-year lease on the Neal Property and has staked an additional seven contiguous claims on public land that was open to mineral entry.
For further information contact:
Atlanta Gold Inc.
Atlanta Gold 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 the subsequent private placement with Jipangu Inc. Forward-looking statements are based upon the assumptions, estimates, opinions and analysis made by management in light of its experience, current conditions and its expectations of future developments. These assumptions include those concerning the receipt of TSX Venture Exchange approval and the satisfaction of the conditions to closing the transaction. 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 in the forward-looking 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, fluctuations in resource prices 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 quarterly Management’s Discussion and Analysis and in other Company filings with securities and regulatory authorities which are available 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 in the forward-looking statements and accordingly, readers should not place undue reliance on those statements.
Readers are cautioned that the foregoing lists of risks, uncertainties, assumptions 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 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.
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.