Atlanta completes $3 million debenture financing

Junior mineral explorer Atlanta Gold (CVE:ATG) said Thursday it completed its previously announced debenture financing with brokerage firm Concept Capital Management, and has repaid its $3 million bridge loan.

The company said it issued Concept a $3 million six percent convertible debenture, and 30 million common share purchase warrants of Atlanta exercisable for five years at 11 cents apiece.

The debenture has a term of five years plus one day with an interest of six percent each year, and is convertible in whole or in part into common shares of Atlanta at a conversion price of 10 cents per share, it added.

Interest on the debenture can be paid in cash or stock, and is subject to Toronto Venture Exchange approval. If a default occurs, interest on the debentures will be paid at a rate of 8.5 percent a year.

Both the debenture and warrants issued are subject to a four month hold period that expires on April 15, 2012.

On June 8, Atlanta announced that it inked an agreement with Concept Capital Management for a $3 million non-interest secured short term loan, the proceeds of which went towards the purchase of a 100 percent stake in a 430-acre mining property at Atlanta’s gold project in Idaho.

The Atlanta Gold project lies inside the historic middle Boise mining district in an area with a long history of exploration and development of gold and silver ore. The project site rests on Atlanta Hill, which rises about 579 metres above Atlanta.

The junior miner, through its 100 percent owned subsidiary, holds leases, options and ownership interests in its Atlanta properties, which comprise roughly 8.74 square kilometres, located 90 air kilometres east of Boise, in Elmore County, Idaho.