TORONTO,
Oct. 2, 2012 /CNW/ - Atlanta Gold
Inc. (TSXV: ATG; OTCQX: ATLDF) announces that 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 payables and 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.