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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").
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
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.