TORONTO--(BUSINESS WIRE)--Atlanta Gold Inc. (TSXV: ATG; OTC Pink: ATLDF) announces that it has entered into an agreement with Jipangu Inc. to complete a private placement of 4,700,000 common shares at C$0.069 per share for gross proceeds of C$324,300. Upon completion of the private placement, Jipangu Inc. will own approximately 15% of the outstanding shares of the Company.
Net proceeds from the offering will be used for general working capital purposes.
Completion of the private placement is subject to the approval of the TSX Venture Exchange. The common shares issuable on the private placement will be subject to a four-month statutory hold period from the date of closing. Closing of the private placement is expected to occur within the next two weeks.
About the Company
Atlanta Gold Inc. holds through its 100% owned subsidiary, Atlanta Gold Corporation (“AGC”), 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. 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.
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 private placement with Jipangu Inc., the timing thereof and the use of proceeds therefrom. 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.
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