Atlanta Gold Inc. (TSXV: ATG; OTC Pink: ATLDF) announces that
Atlanta Gold Corporation (“AGC”), its wholly-owned subsidiary, has
agreed to transfer its rights in certain water treatment filter systems
and methods (the “Technology”) to HydroClean Resources LP
(“HydroClean”), and AGC will hold a 45% limited partnership interest in
HydroClean.
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.
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.
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