Atlanta Gold Seeks Extension of Time to Pay Penalty
TORONTO, Nov. 1, 2012 /CNW/ - Atlanta Gold Inc. (TSXV: ATG; OTCQX: ATLDF) (the "Company") announces that the Company's wholly-owned subsidiary, Atlanta Gold Corporation ("AGC") has requested from the U.S. District Court for the State of Idaho a six-month extension of the time to pay the US$2,000,000 Court-imposed penalty pertaining to AGC's non-compliance with the United States Federal Water Pollution Control Act ("Clean Water Act") with respect to treatment of water discharge at the historic 900 level adit (the "Adit") located near Atlanta, in Elmore County, Idaho. The Court's Decision of July 19, 2012 had ordered AGC to pay the penalty by October 31, 2012.
The Court's Decision, as amended, had also ordered AGC to achieve compliance with the terms of the NPDES Permit regulated under the Clean Water Act by December 15, 2012. AGC has acted promptly and made substantial efforts to install upgrades to the pilot water treatment facility ("PWTF") which are expected to be fully operational by November 15, 2012. The new and proprietary passive water treatment system is expected to reduce the maximum arsenic level to less than 10 micrograms per liter (10 µ/L) or parts per billion, thus enabling compliance with the Clean Water Act.
The Company is presently evaluating a number of financing alternatives in order to raise the funds necessary to pay the US$2 million penalty.
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.
This news release contains forward-looking information and forward-looking statements (collectively "forward-looking statements") within the meaning of applicable securities laws. All statements, other than statements of historical fact, are forward-looking statements. We use words such as "may", "intend", "will", "should", "anticipate", "plan", "expect", "believe", "estimate" and similar terminology to identify forward-looking statements, including with respect to the time necessary to complete the upgrades to the pilot water treatment facility and the ability of the system to achieve compliance with the NPDES Permit. Such are based upon assumptions, estimates, opinions and analysis made by management in light of its experience, current conditions and its expectations of future developments as well as other factors which it believes to be reasonable and relevant. These assumptions include the availability of requisite equipment and manpower, and the ability to achieve operating estimates. Forward-looking statements involve known and unknown risks, uncertainties and other factors that may cause our actual results to differ materially from those expressed or implied in the forward-looking statements and accordingly, readers should not place undue reliance on those statements. Risks and uncertainties that may cause actual results to vary include, but are not limited to, the Court's discretion to refuse the relief requested and to impose additional financial and other sanctions against AGC, the Company's and AGC's limited financial resources and their ability to raise sufficient funds on a timely basis to carry out the terms of the Court's order (whether or not such order is amended), achieve its business objectives and continue as a going concern; operational and technical difficulties; changes in general economic conditions and in the financial markets; as well as other risks and uncertainties which are more fully described in the Company's annual and quarterly Management's Discussion and Analysis and in other Company filings with securities and regulatory authorities which are available at www.sedar.com. Should one or more risks and uncertainties materialize or should any assumptions prove incorrect, then actual results could vary materially from those expressed or implied in the forward-looking statements and accordingly, readers should not place undue reliance on those statements. Readers are cautioned that the foregoing lists of risks, uncertainties, assumptions and other factors are not exhaustive. The forward-looking statements contained in this news release are made as of the date hereof and the Company undertakes no obligation to update publicly or revise any forward-looking statements contained herein or in any other documents filed with securities regulatory authorities, whether as a result of new information, future events or otherwise, except in accordance with applicable securities laws.
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SOURCE Atlanta Gold Inc.