Atlanta Gold Completes Share Issuance To Holders of its Notes And Debentures
Atlanta Gold Inc. (TSXV: ATG; OTC Pink: ATLDF) announces that it has completed its previously announced issuance of 10,010,374 common shares to the holders of its convertible debentures ("Debentures") and senior secured notes ("Notes") (see news release of May 2, 2017). In accordance with the terms of the agreement previously reached with the holders of the Debentures and Notes, the Company settled C$770,799 of accrued and unpaid interest by the issuance of one share for each C$0.077 of interest. The common shares issued are subject to a four-month statutory hold period, which will expire on October 3, 2017.
The maturity date of the outstanding Notes has been extended by one year to August 31, 2019 and the Notes will be repayable in installments at the rate of 25%, 35% and 40% on August 31st of 2017, 2018 and 2019, respectively. The Company's outstanding options to purchase 6,374.5 ounces of gold at US$1,100 per ounce, previously issued with the Notes, have had their term extended by one year to August 31, 2019 and will vest at the rate of 25%, 35% and 40% on August 31st of 2017, 2018 and 2019, respectively.
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.
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