The equity financing consisted of a private placement in which a wholly owned Canadian subsidiary of Australia-based Pancontinental Mining subscribed for 4.37 million Ateba shares for $350,000. Pancontinental was also issued warrants entitling it to purchase another one million Ateba shares at 10 cents each over two years.
In one of two debt financings, Ateba borrowed $500,000 through a debenture with European Mining Finance, arranged by Lion Investment Management of London, England.
Greenstone Development of Longlac, Ont., indicated recently that it would provide Ateba with $75,000 through an operating line of credit.
Pending completion of the second debt financing, Ateba says it has sufficient capital to upgrade the Beardmore mill. The company already has enough stockpiled ore to carry it through the winter months. During that period, Ateba expects to produce 4,500-5,000 oz gold.
Next spring, Ateba says it will resume its ore sorting of the area dumps to continue production into 1991.
]]>
Be the first to comment on "Ateba has money to reopen mine"