TORONTO, July 14, 2014 /CNW/ - Atlanta Gold Inc.
(TSXV: ATG; OTCQX: ATLDF) (the "Company") announces that all
submissions necessary to obtain approvals to begin exploration
excavation on the Neal Property have been made, with operations
expected to begin in early July 2014.
The Neal Property is contiguous to Forest Service Road 189, 15
miles Southeast of Boise, Idaho,
in Elmore County and 45 miles
Southwest of the Atlanta Project within the same
Trans-Atlanta-Challis fault alignment. The Neal Property and
the Atlanta Project have similar geology.
"With the combination of the Neal and Atlanta properties, the Company has the
potential to operate year round. The Atlanta Project is best
operated during the warmest 6-8 months of the year and the smaller
Neal Property, at a lower altitude, can be operated during months
when snow conditions at Atlanta
make operations difficult. This potential is exhilarating," said
Wm. Ernest Simmons, President and
CEO of the Company. "The test results from the processing of two
bulk samples which are starting this month are important to the
future of the Company. We will be in a position to improve
upon the use of processing equipment and refine the recovery
procedures we have in place. Materials for processing of a
bulk sample excavated on the Neal Property will be transported 23
miles to private land in Boise and
processed in 2014," added Simmons.
The Company also announced the completion of its previously
announced US$600,000 convertible loan
financing. The loan is unsecured and non-interest bearing and is to
be repaid by delivery to the lender of 1,000 troy ounces of gold
(or the cash equivalent thereof) payable in installments over an
18-month period. The loan is convertible at the lender's election
into common shares at a conversion price of C$0.05 during the initial 12 months and at
C$0.10 per share thereafter. All
securities issued pursuant to this financing are subject to a
four-month statutory hold period which will expire on November 7, 2014. The lender also received a
five-year option to purchase, solely from gold produced from the
Neal Property, up to 2,500 ounces of gold at US$1,400 per ounce.
About Atlanta Gold Inc.
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.
Forward-Looking Information
This news
release contains forward-looking information and forward-looking
statements (collectively "forward-looking statements") within the
meaning of applicable securities laws, including with respect to
the commencement of excavation and completion of a bulk sample at
the Neal Property, the processing of the bulk sample and the
respective timing. Such are based upon assumptions, opinions and
analysis made by management in light of its experience, current
conditions and its expectations of future developments as well as
other factors that management believe to be reasonable and
relevant. These assumptions include those concerning the
generation of the bulk sample, the successful application of the
processing technology and the achievement of recovery objectives,
the completion of additional financings, the availability of
equipment and manpower, the ability to achieve operating and cost
estimates and general business and economic conditions.
Forward-looking statements involve known and unknown risks,
uncertainties and other factors that may cause 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, the Company's limited financial resources and
its ability to raise sufficient funds on a timely basis to fund the
capital and operating expenses necessary to carry out its planned
initiatives; fluctuations in resource prices and currency exchange
rates; the speculative nature of mineral exploration and mining
(including with respect to the interpretation of geology,
continuity, size and grade estimates and the recoverability of
resource estimates); operational and technical difficulties which
could increase operating and/or capital costs; risks and hazards
associated with the business of mineral exploration, development
and mining, including environmental, health and safety hazards;
changes in laws or regulations and the risk of obtaining necessary
consents, licenses and permits; 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.
To receive Company news via email, contact
jeanny@chfir.com and mention "Atlanta Gold News" in the subject
line.
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SOURCE Atlanta Gold Inc.