Atlanta Gold Completes $500,000 Private Placement and Jipangu Inc. Increases Ownership to 19.5%
Atlanta Gold Inc. (TSXV:ATG; OTC Pink:ATLDF) announces that it has completed its previously announced C$500,000 private placement (see news releases of April 4 and April 13, 2016) for aggregate gross proceeds of $500,022. The Company today issued 3,785,571 common shares at C$0.07 per share for proceeds of C$264,990 and on April 13, 2016 issued 3,357,600 common shares at C$0.07 per share for proceeds of C$235,032. Net proceeds from the offering will be used for general working capital purposes.
The common shares issued today will be subject to a four-month statutory hold period, which will expire on September 21, 2016.
Jipangu Inc. purchased 2,784,000 common shares offered in the private placement, representing approximately 7.2% of the number of shares currently issued, for an aggregate purchase price of C$194,880, such that it currently owns 7,484,000 common shares of the Company, being approximately 19.5% of the Company’s issued common shares on an undiluted basis. Jipangu Inc. has advised that the shares of the Company were acquired for investment purposes, that subject to availability and price, it may purchase additional securities of the Company and the Company’s subsidiaries and that it may in future seek to have one nominee appointed to the Company’s Board of Directors.
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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View source version on businesswire.com: http://www.businesswire.com/news/home/20160520005894/en/
Contact
Atlanta Gold Inc.
Wm. Ernest Simmons, 208-424-3343
President and CEO
Fax: 208-342-1014
esimmons@atlantagold.com
or
Peili Miao, 416-777-0013
Chief Financial Officer
Fax: 416-777-0014
peilimiao@atgoldinc.com
or
For further information concerning Jipangu Inc., contact:
Kenji Sakai, +81-3-5422-6800
Executive Director
k.sakai@jipangu.co.jp
