Atlanta Gold Agreement with HydroClean Resources LP

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Atlanta Gold Agreement with HydroClean Resources LP

Atlanta Gold Inc. announces that Atlanta Gold Corporation, its wholly-owned subsidiary, has agreed to transfer its rights in certain water treatment filter systems and methods to HydroClean Resources LP, 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.

Source: BusinessWire

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