TORONTO, Oct. 2, 2012 /CNW/ - Atlanta Gold Inc. (TSXV: ATG; OTCQX: ATLDF) announcesthat it has completed the previously announced private placement
offering of Units (see news release of September 25, 2012) for gross
proceeds of $500,000. The Company issued 16,666,666 Units at a price
of $0.03 per Unit, with each Unit consisting of one common share and
one-half of one common share purchase warrant. Each whole warrant is
exercisable for a period of up to 24 months from closing of the
offering and will entitle the holder to purchase one additional common
share at $0.05 for the initial 12 months from closing and at $0.10 per
share thereafter. The Company has the right to accelerate the expiry
date of the warrants if the closing price of the Company's common
shares on the TSX Venture Exchange exceeds $0.15 for 20 consecutive
days on which the Company's shares trade.
Sprott Asset Management LP, acting on behalf of a Sprott fund,
subscribed for 12,866,666 Units in the offering, which resulted in
Sprott Asset Management LP on behalf of certain funds and managed
accounts owning approximately 17.0% of the outstanding shares of the
Company, assuming exercise of warrants by Sprott Asset Management LP.
Approximately $261,000 of the net proceeds from the offering will be
used to reduce existing trade payablesand the balance will be used for general working capital purposes,
including payment of salaries, rental and lease payments and listing
fees.
The Company paid a finder's fee of $20,000 and issued 666,666
compensation options, with each compensation option entitling the
holder to purchase one common share at a price of $0.10 per share for
one year.
All securities issued under the offering will be subject to a four-month
statutory hold period, which will expire on February 3, 2013.
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.
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.
<p> </p> <p> <b>Atlanta Gold Inc.</b>:<br/> Wm. Ernest Simmons<br/> President and CEO<br/> Telephone: (208)-424-3343<br/> Fax: 208-338-6513<br/> Email: <a href="mailto:esimmons@atlantagold.com">esimmons@atlantagold.com </a> </p> <p> <b>Atlanta Gold Inc.</b><br/> Bill Baird<br/> Vice President and CFO<br/> Telephone: (416) 777-0013<br/> Fax: (416) 777-0014<br/> E-mail: <a href="mailto:info@atgoldinc.com">info@atgoldinc.com </a> </p> <p> <b>CHF Investor Relations</b><br/> Juliet Heading<br/> Senior Account Manager<br/> Telephone: (416) 868-1079 ext 239<br/> Fax: (416) 868-6198<br/> E-mail: <a href="mailto:juliet@chfir.com">juliet@chfir.com</a> </p>