JOINT NEWS RELEASE
ATLANTA GOLD INC.
AND NIOGOLD MINING CORP. OPTION ABITIBI QUEBEC GOLD PROPERTIES FROM BREAKWATER
RESOURCES
September 30, 2008, Toronto, Ontario � Atlanta Gold Inc. (TSX: ATG) and
Niogold Mining Corp. (TSXV: NOX) jointly announce that they have acquired
an option from Breakwater Resources Ltd. to acquire a minimum 60% and a maximum
80% interest in certain mining claims located in the Abitibi region of Quebec.
Atlanta had in 2003 acquired a five-year option from Breakwater to acquire
these interests in the Normar, Mouskor, Malartic H and Malartic H Annex claims
exercisable by incurring expenditures of $3.5 million on the properties and
making payments to Breakwater totaling $125,000. To date, Atlanta has incurred
approximately $2.3 million in expenditures and has paid Breakwater $100,000.
Under the terms of the new agreement, the term of the option has been extended
to September 1, 2009. Atlanta will issue 41,806 common shares to Breakwater,
Niogold has paid $25,000 to Breakwater and Niogold has agreed to incur up to
$1.2 million in expenditures on the Malartic claims by September 1, 2009 to
exercise the option. Upon exercise, Atlanta will acquire a 60% interest in the
Normar and Mouskor claims and Niogold will acquire a 60% interest in the
Malartic claims. Upon exercise of the option, Atlanta and Breakwater with
respect to Normar and Mouskor, and Niogold and Breakwater, with respect to
Malartic, will form joint ventures. Under the terms of each of the joint
venture agreements, if Breakwater�s interest in a venture is diluted to 10% or
less, its interest therein will be converted to a 1.5% net smelter return
royalty, which may be purchased for $750,000.
Following exercise of the option and prior to delivery of a bankable
feasibility study, Atlanta and Niogold may increase their respective interests
in the properties by an additional 10% upon Niogold making a $100,000 payment
to Breakwater. Within 6 months following delivery of a bankable feasibility
study on either property, Niogold and Atlanta may elect to increase their
respective interests by a further 10% by making a further payment to Breakwater
totaling $500,000. Provided that each of Niogold and Atlanta contribute equally
to the $500,000 payment, then Atlanta and Niogold will each be entitled to a 2%
net smelter return royalty on the other�s property, of which one-half may be
purchased for $1 million and the balance may be purchased for an additional $1
million.
Bill Baird, President and CEO of Atlanta stated: �We are very pleased to have
reached this agreement which will enable Atlanta to continue to participate in
the prospective Abitibi region while focusing on development of our advanced
Atlanta gold project in Idaho.�
About Atlanta Gold Inc. Atlanta Gold Inc. (TSX: ATG) holds through its
100% owned subsidiary, Atlanta Gold Corporation, a 100% interest in the Atlanta
property which comprises approximately 2,081 acres and is located 65 miles 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 and on acquiring, exploring and developing other
attractive gold projects.
About Niogold Mining Corp. NioGold Mining Corp. is a junior exploration
company primarily focused on gold. Niogold�s main properties are the Camflo
West and the Marban Block located in the Malartic and Val-d�Or Mining Camps,
Abitibi, Quebec. The camps have produced over 27 million ounces of gold and
presently encompass several active advanced exploration and mine development
projects such as Canadian Malartic (Osisko Exploration), Kiena (Wesdome),
Midway (Northern Star Mining), Goldex (Agnico-Eagle) and Lac Herbin (Alexis Minerals).
The Marban Block encompasses three former gold producers, namely the Norlartic,
Kierens (First Canadian), and Marban mines that collectively produced over
590,000 ounces of gold.
Forward-Looking Information This news release contains forward-looking
information and forward-looking statements within the meaning of applicable
securities laws. All statements, other than statements of historical fact, are
forward-looking statements. We use words such as �may�, �will�, �should�,
�anticipate�, �plan�, �expect�, �believe�, �estimate� and similar terminology
to identify forward looking information and statements. Such are based upon
assumptions, estimates, opinions and analysis made by management in light of
its experience, current conditions and its expectations of future developments
as well as other factors which it believes to be reasonable and relevant.
Forward looking information and 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 information
and 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 speculative nature of mineral
exploration, development and mining (including with respect to size, grade and
recoverability of mineral reserves and resources); operational and technical
difficulties; risks and hazards associated with the business of mineral
exploration, development and mining, including environmental hazards;
government action or delays in the receipt of governmental approvals, permits
and licenses; changes in resource prices and fluctuations in currency exchange
rates; the availability of financing and changes in general economic conditions
or conditions in the financial markets. Readers are cautioned that the
foregoing lists of risks, uncertainties 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 i! nformation or statements contained herein or in
any other docu! ments fi led with securities regulatory authorities, whether as
a result of new information, future events or otherwise, except in accordance
with applicable securities laws.
For further information contact:
Atlanta Gold Inc.
Bill Baird
President and CEO,
Telephone: (416) 777-0013; Fax: (416) 777-0014
E-mail: info@atgoldinc.com
Niogold Mining Corp.
Michael A. Iverson
President and CEO
Telephone: (604) 856-9887
E-mail : miverson@niogold.com
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