/NOT FOR DISTRIBUTION TO UNITED STATES NEWSWIRE SERVICES OR DISSEMINATION IN THE UNITED STATES/
TORONTO, Oct. 18, 2011 /CNW/ - Atlanta Gold Inc. (TSXV: ATG) (OTCQX: ATLDF) announces that it intends to complete a non-brokered private placement of up to 50,000,000 Units at a price of
.08 per Unit for gross proceeds of up to $4,000,000. Each Unit will consist of one common share and one-half of one warrant to purchase a common share of the Company. Each whole warrant will entitle the holder to purchase one additional common share at a price of
.12 per share for a period of 24 months from the closing of the offering. Net proceeds from the offering will be used for exploration, development and permitting expenditures on the Company's Atlanta gold property located in Idaho, U.S.A. and for working capital. Completion of the offering is subject to TSX Venture Exchange approval.
Certain insiders of the Company may participate in the offering. The Company will pay a finder's fee to registrants consisting of an 8% cash commission and 8% compensation options, with each compensation option entitling the holder to purchase one common share at a price of
.12 per share for one year. All securities issued under the offering will be subject to a four-month statutory hold period.
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 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.