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.
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SOURCE Atlanta Gold Inc.