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September 30, 2008 Toronto Stock Exchange "ATG" |
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NOT FOR DISTRIBUTION TO UNITED STATES NEWSWIRE SERVICES OR DISSEMINATION IN THE UNITED STATES ATLANTA GOLD INC. AND NIOGOLD MINING CORP. OPTION ABITIBI QUEBEC GOLD PROPERTIES FROM BREAKWATER RESOURCES Toronto, Ontario – Atlanta Gold Inc. (TSX: ATG) and Niogold Mining Corp. (TSXV: NOX) jointly announce that they have acquired an option from Breakwater Resources Ltd. to acquire a minimum 60% and a maximum 80% interest in certain mining claims located in the Abitibi region of Quebec. Atlanta had in 2003 acquired a five-year option from Breakwater to acquire these interests in the Normar, Mouskor, Malartic H and Malartic H Annex claims exercisable by incurring expenditures of $3.5 million on the properties and making payments to Breakwater totaling $125,000. To date, Atlanta has incurred approximately $2.3 million in expenditures and has paid Breakwater $100,000. Under the terms of the new agreement, the term of the option has been extended to September 1, 2009. Atlanta will issue 41,806 common shares to Breakwater, Niogold has paid $25,000 to Breakwater and Niogold has agreed to incur up to $1.2 million in expenditures on the Malartic claims by September 1, 2009 to exercise the option. Upon exercise, Atlanta will acquire a 60% interest in the Normar and Mouskor claims and Niogold will acquire a 60% interest in the Malartic claims. Upon exercise of the option, Atlanta and Breakwater with respect to Normar and Mouskor, and Niogold and Breakwater, with respect to Malartic, will form joint ventures. Under the terms of each of the joint venture agreements, if Breakwater’s interest in a venture is diluted to 10% or less, its interest therein will be converted to a 1.5% net smelter return royalty, which may be purchased for $750,000. Following exercise of the option and prior to delivery of a bankable feasibility study, Atlanta and Niogold may increase their respective interests in the properties by an additional 10% upon Niogold making a $100,000 payment to Breakwater. Within 6 months following delivery of a bankable feasibility study on either property, Niogold and Atlanta may elect to increase their respective interests by a further 10% by making a further payment to Breakwater totaling $500,000. Provided that each of Niogold and Atlanta contribute equally to the $500,000 payment, then Atlanta and Niogold will each be entitled to a 2% net smelter return royalty on the other’s property, of which one-half may be purchased for $1 million and the balance may be purchased for an additional $1 million. Bill Baird, President and CEO of Atlanta stated: “We are very pleased to have reached this agreement which will enable Atlanta to continue to participate in the prospective Abitibi region while focusing on development of our advanced Atlanta gold project in Idaho.” About Atlanta Gold Inc. Atlanta Gold Inc. (TSX: ATG) holds through its 100% owned subsidiary, Atlanta Gold Corporation, a 100% interest in the Atlanta property which comprises approximately 2,081 acres and is located 65 miles 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 and on acquiring, exploring and developing other attractive gold projects. About Niogold Mining Corp. NioGold Mining Corp. is a junior exploration company primarily focused on gold. Niogold’s main properties are the Camflo West and the Marban Block located in the Malartic and Val-d’Or Mining Camps, Abitibi, Quebec. The camps have produced over 27 million ounces of gold and presently encompass several active advanced exploration and mine development projects such as Canadian Malartic (Osisko Exploration), Kiena (Wesdome), Midway (Northern Star Mining), Goldex (Agnico-Eagle) and Lac Herbin (Alexis Minerals). The Marban Block encompasses three former gold producers, namely the Norlartic, Kierens (First Canadian), and Marban mines that collectively produced over 590,000 ounces of gold. Forward-Looking Information This news release contains forward-looking information and 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”, “will”, “should”, “anticipate”, “plan”, “expect”, “believe”, “estimate” and similar terminology to identify forward looking information and statements. 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. Forward looking information and 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 information and 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 speculative nature of mineral exploration, development and mining (including with respect to size, grade and recoverability of mineral reserves and resources); operational and technical difficulties; risks and hazards associated with the business of mineral exploration, development and mining, including environmental hazards; government action or delays in the receipt of governmental approvals, permits and licenses; changes in resource prices and fluctuations in currency exchange rates; the availability of financing and changes in general economic conditions or conditions in the financial markets. Readers are cautioned that the foregoing lists of risks, uncertainties 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 information or 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. For further information contact: Atlanta Gold
Inc.
Niogold Mining Corp.
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