Atna eyes Sheridan assets (May 12, 2003)

Vancouver — Atna Resources (ATN-T) and a well-known private investor have signed a letter-in-principal paving the way for Atna to acquire $3.4 million in assets.

Under the deal, Atna will issue to J. Patrick Sheridan up to 11.2 million shares, subject to adjustment, at an average price of 30 per share in three instalments: 5 million shares on the closing of the transaction, 3.2 million shares by May 10, 2003, and 3 million shares by May 10, 2004. In return, Atna will receive certain royalty accounts and other assets from Sheridan. (The final value of the assets may be adjusted to reflect the market value of the hedge account at the date of closing.)

“I am pleased to have a significant stake in an undervalued TSX company that appears to be on a growth path,” states Sheridan.

Sheridan, through an affiliated company, Rimmer Mining Co., owns more than 10% of Atna and is thereby an insider, under the rules of the Toronto Stock Exchange. That means the deal requires shareholder approval; it is also subject to final board approval.

“This represents an excellent opportunity for Atna and its shareholders to move the company forward with the backing and financial acumen of one of the most successful people in the mining industry,” says President David Watkins.

Last year, the junior branched out from its base metal roots and acquired several prospective gold mining claims in Nevada’s prolific Carlin trend (T.N.M., Dec. 2-8/02). Any proceeds from the transaction will be used to advance these projects and seek out other acquisitions.