Atna Resources Extends $17.5 Million Credit Facility
GOLDEN, Colo., March 18, 2013 /PRNewswire/ -- Atna Resources Ltd. ("Atna" or the "Company") (TSX:ATN / OTCQB:ATNAF) is pleased to report it has extended its outstanding CAD $17.5 million credit facility with Sprott Resource Lending Partnership ("Sprott").
In August 2011, Atna entered into an agreement with Sprott obtaining a CAD $20 million credit facility in order to finance the cash portion of the Pinson Mine acquisition and to provide initial development capital for the project. This facility has since been paid down to C$17.5 million.
Under the terms of the amendment Sprott has agreed that the outstanding balance will be amortized in twelve equal monthly payments of $1.46 million each commencing September 30, 2013 and ending on August 29, 2014. Once this secured facility has been reduced to C$11.5 million, the Company will be allowed to incur up to $35 million in additional indebtedness for the construction of the Reward mine. The interest coupon on this facility remains unchanged at nine percent per annum. As consideration for extending the credit facility, Atna will issue 675,240 common shares of Atna to Sprott, pending final approval by the TSX.
"Atna is currently focused on adding value through the ramp-up of operations at its Pinson Mine. Amending this facility supports that effort. We are appreciative of Sprott's continued support for Atna's growth and development plans," states James Hesketh, President & CEO.
The Pinson mine is currently being transitioned from development to production with over 80 employees and contractors actively employed. A number of active ore stopes have been developed, while primary development of the Pinson spiral and Range Front lateral continues. One oxide ore shipment has been made and additional oxide ore shipments are currently in progress. Sulfide ore is being stockpiled for future shipment.
For additional information on the Pinson Mine and Atna Resources, please visit our website at www.atna.com.
This press release contains certain "forward-looking statements," as defined in the United States Private Securities Litigation Reform Act of 1995, and within the meaning of Canadian securities legislation relating to potential mineral resource, reserve or production at the Pinson Mine. Forward-looking statements are statements that are not historical fact. They are based on the beliefs, estimates and opinions of the Company's management on the date the statements are made and they involve a number of risks and uncertainties. Consequently, there can be no assurances that such statements will prove to be accurate and actual results and future events could differ materially from those anticipated in such statements. The Company undertakes no obligation to update these forward-looking statements if management's beliefs, estimates or opinions, or other factors, should change, unless required by law. Factors that could cause future results to differ materially from those anticipated in these forward-looking statements include: gold deposit modeling, development and future production at the Pinson Mine, the Company might encounter problems such as the significant depreciation of metals prices; accidents and other risks associated with mine development and production operations; the risk that the Company will encounter unanticipated geological factors; the Company's need for and ability to obtain additional financing; the possibility that the Company may not be able to secure permitting and other governmental clearances necessary to carry out the Company's exploration and development programs; and the other risk factors discussed in greater detail in the Company's various filings on SEDAR (www.sedar.com) with Canadian securities regulators and its filings with the U.S. Securities and Exchange Commission, including the Company's 2011 Form 20-F dated March 26, 2012.
FOR FURTHER INFORMATION, CONTACT:
James Hesketh, President and CEO - (303) 278-8464
Valerie Kimball, Investor Relations - toll free (877) 692-8182
SOURCE Atna Resources Ltd.