Deal with Waterton includes warrants, funds credit facility repayment
By Devika Patel
Knoxville, Tenn., Jan. 31 - Atna Resources Ltd. said it negotiated a $22 million non-revolving, senior secured credit facility financing with Waterton Precious Metals Fund II Cayman, LP.
The credit facility matures in two years and bears interest at 10%.
Waterton also received 10 million warrants, which are each exercisable at C$0.25 for three years. The strike price is a 47.06% premium to the Jan. 30 closing share price of C$0.17. The investor will also be paid a 5% fee and a $440,000 cash structuring fee.
Proceeds will be used to repay the company's existing C$18.1 million secured credit facility with Sprott Resource Lending Partnership and for general working capital purposes.
"This new facility extends our debt-service period through January 2016, when a balloon payment will be due," president and chief executive officer James Hesketh said in a press release. "This will allow Atna to service its debt from internally generated cash flow and positions the company to benefit from a stronger gold market."
Based in Golden, Colo., Atna is a gold exploration and development company.
| Issuer: | Atna Resources Ltd.
|
| Issue: | Non-revolving senior secured credit facility
|
| Amount: | $22 million
|
| Maturity: | Two years
|
| Coupon: | 10%
|
| Warrants: | 10 million
|
| Warrant expiration: | Three years
|
| Warrant strike price: | C$0.25
|
| Investor: | Waterton Precious Metals Fund II Cayman, LP
|
| Fee: | 5% fee, $440,000 cash structuring fee
|
| Settlement date: | Jan. 31
|
| Stock symbol: | Toronto: ATN
|
| Stock price: | C$0.17 at close Jan. 30
|
| Market capitalization: | C$33.24 million
|
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