TORONTO, Aug. 31, 2012 /CNW/ - Atlanta Gold Inc. (TSXV: ATG; OTCQX: ATLDF) announces that it has entered into agreements to satisfy outstanding indebtedness of approximately $816,720 by the issuance of 16,335,909 common shares at a deemed price of $0.05 per share. The indebtedness consists of trade payables and loans from shareholders and includes approximately $662,448 owed to three insiders of the Company in respect of shareholder loans.

The issuance of the shares is 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 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 with respect to the issuance of the shares. This statement is based upon the assumption that the Company will receive TSX Venture Exchange approval for the issuance of the shares, and is made as of the date hereof.  The Company undertakes no obligation to update publicly or revise any forward-looking statements contained herein 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.

SOURCE Atlanta Gold Inc.

Copyright 2012 Canada NewsWire

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