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TORONTO , Nov. 18, 2014 /CNW/ - Atlanta Gold Inc. (TSXV: ATG; OTCQX: ATLDF) announces the sale by Atlanta Gold Inc. (the "Company") of its interest in 40 mineral claims comprising the Company's Abitibi gold property located in western Quebec (the "Abitibi Property") to Vantex Resources Ltd. ("Vantex").
Two agreements have been reached:
(i) The Company sold its 100% ownership interest in 13 claims comprising the Bousquet portion of the Abitibi Property in exchange for 1,250,000 Common Shares of Vantex and a one percent (1%) Net Smelter Returns Royalty.
(ii) The Company sold a 60% ownership interest in 27 claims comprising the Normar portion of the Abitibi Property interest in exchange for 2,455,000 Common Shares of Vantex and a one percent (1%) Net Smelter Returns Royalty, applicable on the portion owned by the Company. Breakwater Resources Ltd. ("Breakwater") (now wholly-owned by Nyrstar) holds the remaining 40% ownership.
The Company obtained the consent from Breakwater to the transfer of those claims and the grant of the one percent (1%) additional royalty to the Company on the 27 claims pursuant to an Option Agreement dated as of September 29, 2008 as amended, among Atlanta , Breakwater and Niogold Mining Corp.
At the time of the acquisition of its 60% interest in the Normar claims, the Company assumed obligations under pre-existing royalty agreements (the "Existing Royalties") on a pro-rata basis. Barrick Gold Corporation currently holds a one percent (1%) net smelter return royalty and Delfer Gold Mines, Inc. currently holds a five percent (5%) net profits royalty. Vantex agreed that it shall promptly provide notice in writing to the holders of the royalties under the Existing Royalties.
The issuance of Common Shares of Vantex shall be under a prospectus exemption and will be subject to a four-month statutory restricted period on resale and it is subject to the approval of the TSX Venture Exchange.
"Sale of lower exploration properties allows the Company to focus on developing the Atlanta Project, Neal Property and other properties, rather than incur further expenditures necessary to maintain the claims." said Ernest Simmons , President and CEO of the Company.
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 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.
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 shares in satisfaction of interest and the amendments to the terms of the warrants, gold options and Notes. Such are based upon the assumption that the Company will receive the requisite approvals of the TSX Venture Exchange, and are made as of the date hereof. 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.
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.