2014

Atlanta Gold Inc. Completes $500,000 Private Placement

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.




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