Atlanta Gold Inc. announced that it has completed the initial closing of its previously announced private placement of Units consisting of senior secured notes (Notes) and common share purchase warrants. The company issued USD 4 million principal amount Notes and 4,000,000 Warrants, for gross proceeds of USD 4,000,000. The TSX Venture Exchange has granted the company an extension to August 30, 2013 to complete the placement of up to an additional 5,000,000 Units.

The Notes bear interest at 10% per annum and the principal will be amortized at 25%, 35% and 40%, which will be repayable in cash installments on August 31, 2014, August 31, 2015 and August 31, 2016, respectively. The Notes are secured by the limited recourse guarantee of the company's subsidiary, Atlanta Gold Corporation (AGC), and by a mortgage of AGC's interest in its Atlanta Project. Note holders received options exercisable until August 31, 2016 to purchase an aggregate of 95.0 troy ounces of gold at USD 1,125 per ounce for each 100,000 Units purchased (USD 100,000).

Of the total ounces optioned per 100,000 Units, 23.75 ounces (25%) will vest on August 31, 2014, 33.25 ounces (35%) will vest on August 31, 2015 and 38.0 ounces (40%) will vest on August 31, 2016. Net proceeds from the offering will be used for exploration, excavating and test processing of bulk samples, environmental permitting, engineering and development in respect of the Atlanta Project, payment of liabilities, implementation of the Supplement Plan of Operations and for general working capital purposes.