Meadow Bay Gold Enters Into Purchase Agreement for the ATNA Resources NBI Claim Group in the Atlanta Mining District, Nevada
VANCOUVER, BRITISH COLUMBIA -- (Marketwire) -- 06/30/11 -- Meadow Bay Gold Corporation ('Meadow Bay Gold') (TSX VENTURE: MAY)(PINK SHEETS: MBYCF)(FRANKFURT: 20M)(WKN: A1C3DN) has signed a purchase agreement with Atna Resources, Ltd. (TSX: ATN) for claims in the Atlanta Mining District, Lincoln County, Nevada. Atna Resources' NBI claim group consists of 135 unpatented mining claims contiguous with claims of the Atlanta Gold Mine acquired by Meadow Bay Gold in March of this year.
The NBI claims significantly expand Meadow Bay Gold's land position in the Atlanta Gold Mining District. With the addition of other claims staked this spring, Meadow Bay now effectively controls the entire Atlanta Mining District including the Atlanta Gold and Silver Mine closed due to low gold prices in 1985.
The terms of the purchase agreement include a $150,000 initial payment to Atna Resources on signing and the issuance of 400,000 shares of Meadow Bay Gold common stock. An additional $100,000 shall be paid to Atna Resources on the first anniversary. The claims are subject to a 3% NSR royalty of which 1% can be purchased by Meadow Bay for $1,000,000 prior to the fifth anniversary.
The NBI claims provide Meadow Bay with the necessary scale to allow for a resumption of production from the Atlanta Mine at a rate far in excess of what it experienced in the 1980s. In addition, the NBI claims offer exploration opportunities, particularly along projected extensions of the mineralized Atlanta structure. A review of past exploration results suggests that the mineralization is open both at depth and to the north.
Core drilling with the intent of confirming past exploration results at the Atlanta Mine commenced on June 12, 2011.
Charles (Bill) Reed, a Qualified Person under National Instrument 43-101, has reviewed the contents of this news release.
Neither 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 press release.
Contacts:
Meadow Bay Gold Corporation
Robert Dinning
Chairman and CEO
www.meadowbaygold.com
Launch IR
Matthew Harrington
613-882-7467