TORONTO--(BUSINESS WIRE)--Atlanta Gold Inc. (the "Company") (TSXV: ATG; OTC Pink: ATLDF) announces that its subsidiary Atlanta Gold Corporation (“AGC”) has received notice that Idaho Conservation League and the Northwest Environmental Defense Center have submitted pleadings to reopen a previously closed case in the U.S. District Court in Idaho in which AGC was the defendant. These parties filed a Motion to Hold Defendant in Civil Contempt, and Impose Additional Penalties and Enforcement Remedies which alleges that AGC violated its National Pollutant Discharge Elimination System (“NPDES”) permit, and that AGC did not make all payments when due to the U.S. Treasury for an earlier imposed fine.

AGC owns property in Atlanta, Idaho, that contains an abandoned mine. AGC installed a Pilot Water Treatment Facility at the mine site to treat water flowing out of the 900 level mine Adit. Since the installation of the Pilot Water Treatment Facility and subsequent improvements to that facility, AGC has consistently removed over 99% of the naturally occurring arsenic and iron from water that flows from the Adit. AGC has never mined at the Atlanta site, but has been treating the water that flows from the Adit in various capacities since 1994, with recent results of less than 10 ug/L of arsenic and 1,000 ug/L of iron, most often at non-detect levels, in compliance with the NPDES permit’s requirements.

On occasions that the test levels have exceeded the effluent limits prescribed in the NPDES permit, such as during Spring runoff, or brief malfunctions in the flow or filters within the Pilot Water Treatment Facility, these were the result of AGC’s inability to control the flow of water. AGC has actively been in consultation with agencies in an effort to resolve the water treatment issues in Atlanta, Idaho.

While AGC is confident that this matter can be amicably resolved, there can be no assurance that AGC will not be faced with liability nor can it presently be determined what penalties may be imposed by the Court should the claim be upheld.

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.

Forward-Looking Information

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”, “confident” and similar terminology to identify forward looking statements, including with respect to AGC’s ability to defend itself against the legal claim and the outcome thereof. Such are based upon assumptions, estimates, opinions and analysis made by management in light of its experience, advice from its advisors, current conditions and its expectations of future developments as well as other factors which it believes to be reasonable and relevant. 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 Company’s ability to successfully defend the lawsuit, the discretion of the Court and the regulatory authorities to impose fines and other penalties should the defense be unsuccessful, the Company’s limited financial resources and the impact that such legal action may have on the receipt of governmental approvals, permits and licenses. 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.

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.

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.

For further information contact:

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.

The Company will advise shareholders the outcome of these negotiations as soon as possible.

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.

For further information contact:

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.

Mr. Allan Folk has been appointed Chairman of the Board, succeeding James K. Gray as Chairman. Mr. Gray will continue as a member of the Board. 

The Company also announced the retirement of W. Warren Holmes from its Board. Atlanta Gold sincerely thanks Mr. Holmes for his invaluable guidance and wise counsel during his tenure on the Board.

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.

For further information contact:

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.

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.

For further information contact:

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.

The Company paid finders’ fees of C$6,002 in connection with the closing of the initial tranche.  The common shares issuable on the private placement will be subject to a four-month statutory hold period, which will expire on August 14, 2016. 

The Company anticipates that it will complete the balance of the financing within 30 days.

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 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.

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 kilometers). 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.

For further information contact:

Forward-Looking Information
This news release contains forward-looking information and forward-looking statements (collectively “forward-looking statements”) within the meaning of applicable securities laws with respect to the completion of the balance of the private placement, the timing thereof and the use of proceeds therefrom.  Forward-looking statements are based upon the assumptions, estimates, opinions and analysis made by management in light of its experience, current conditions and its expectations of future developments.  These assumptions include those concerning the availability of adequate financing and no significant decline in existing economic and general business conditions.  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, fluctuations in resource prices and currency exchange rates; 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.

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.

Jipangu Inc., currently a holder of 15% of the outstanding common shares of the Company, has expressed interest in participating in the financing.  Jipangu’s participation, if any, will be limited such that its percentage shareholding following completion of the financing will not exceed 19.9% of the Company’s then outstanding shares.

The Company will pay a finder’s fee of 6%. Completion of the private placement is subject to the approval of the TSX Venture Exchange.  The common shares issuable on the private placement will be subject to a four-month statutory hold period from the date of closing. 

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.

For further information contact:

Forward-Looking Information

This news release contains forward-looking information and forward-looking statements (collectively “forward-looking statements”) within the meaning of applicable securities laws with respect to the completion of the private placement, the participation of Jipangu Inc. and the use of proceeds therefrom.  Forward-looking statements are based upon the assumptions, estimates, opinions and analysis made by management in light of its experience, current conditions and its expectations of future developments.  These assumptions include those concerning the receipt of TSX Venture Exchange approval and the satisfaction of the conditions to closing the transaction.  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, fluctuations in resource prices and currency exchange rates; 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.

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.

As was announced on December 16, 2015, Jipangu Inc. previously acquired by private placement 2,950,000 common shares and agreed to purchase a further 1,750,000 common shares of the Company at a price of C$0.069 per share, subject to receipt of requisite approvals from the TSX Venture Exchange. Jipangu Inc. now owns and controls 4,700,000 common shares of the Company, being 15% of the Company’s outstanding shares on an undiluted basis.  Jipangu Inc. has advised that the shares of the Company were acquired for investment purposes. Subject to availability and price, Jipangu Inc. may purchase additional securities of the Company.

About the Company

Atlanta Gold Inc. holds through its 100% owned subsidiary, AGC, leases, options or ownership interests in its Atlanta properties which comprise approximately 2,159 acres (8.74 square kilometres) located 90 air kilometres 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; in that, there are northeasterly-trending shear zones in granodioritic host rocks.  The Neal Property 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.

For further information contact:

For further information concerning Jipangu Inc., contact:
Kenji Sakai
Executive Director
Suite 902, AiOS Hiroo Bld.
1-11-2 Hiroo Shibuya-Ku
Tokyo 150-0012 Japan
Telephone:+81-3-5422-6800
Email:[email protected]

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.

The Technology was developed by AGC and by Wm. Ernest Simmons, the President and CEO and a director of the Company, following the 2012 Court order that mandated that AGC implement measures to obtain compliance with the effluent standards of the United States Federal Water Pollution Control Act in respect of contaminated groundwater flowing from a historic mine adit located near AGC’s Atlanta Project.  The Technology, together with certain additional elements developed by Mr. Simmons, is presently the subject of an international patent application submitted to the U.S. Patent and Trademark Office in November 2015.

HydroClean is a limited partnership formed under the Idaho Uniform Limited Partnership Act.  In addition to AGC, the initial limited partners will be G2T Technologies Inc. (“G2T”), a private Alberta corporation, as to a 45% interest and Mr. Simmons as to a 10% interest.  James Gray, the Chairman of the Board of the Company, owns one-third of G2T. G2T will transfer to HydroClean an existing patent for a method and apparatus to recover water from air so as to provide clean water and G2T has also agreed to pay all costs associated with obtaining a patent on the Technology.  Mr. Simmons, as co-inventor, will hold a 10% carried interest in HydroClean until total partner contributions to HydroClean exceed US$4 million.

The Board of Directors of the Company formed a committee of independent directors, comprised of Warren Holmes, Allan Folk and Eric Berentsen, to consider the transaction with HydroClean. Messrs. Gray and Simmons, as interested parties in the transaction, declared their interest and did not participate in the Committee’s deliberations or vote on the matter.  The Committee was of the view that with appropriate funding and expertise, the Technology once patented, could be marketable and potentially provide a significant source of revenue to AGC. However, due to the severe financial constraints facing AGC and the Company, the Company lacked the funding and expertise necessary to appropriately pursue the opportunity offered by the Technology. The proposed transaction with HydroClean would permit the patent of the Technology to be sought at no cost to AGC and would allow AGC to participate in future revenues arising from the Technology and from the patent contributed by G2T, through AGC’s interest in HydroClean. The Committee unanimously concluded that the transaction was designed to improve the Company’s financial position and was in the best interests of the Company.

The TSX Venture Exchange has approved the transfer of the Technology to HydroClean.

About the Company

Atlanta Gold Inc. holds through its 100% owned subsidiary, AGC, leases, options or ownership interests in its Atlanta properties which comprise approximately 2,159 acres (8.74 square kilometres) located 90 air kilometres 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; in that, there are northeasterly-trending shear zones in granodioritic host rocks.  The Neal Property 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.

For further information contact:

Forward-Looking Information

_{This news release contains forward-looking information and forward-looking statements (collectively “forward-looking statements”) within the meaning of applicable securities laws with respect to obtaining the patentability of the Technology, the ability to market the Technology and the revenues associated therewith.  Forward-looking statements are based upon the assumptions, estimates, opinions and analysis made by management in light of its experience, current conditions and its expectations of future developments.  These assumptions include those concerning the ability to obtain all requisite consents, the ability to obtain a patent on the Technology, the existence of a suitable market for the Technology and the successful sale or licensing of the Technology to third parties and the costs thereof and revenues therefrom.  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 inability to patent the Technology, the inability of HydroClean to sell or license the Technology or its other intellectual property in a profitable manner, competition from others with significantly more financial resources than HydroClean and the inability of HydroClean to successfully protect its intellectual property. 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.}

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.