Atna Generates Positive Earnings On Revenues
GOLDEN, CO - Atna Resources Ltd. reported that it generated positive earnings of $1.1 million on revenues of $11.8 million; its first positive earnings from operations. In August 2011, the Company signed an Asset Purchase and Sale Agreement with Pinson Mining Company ("PMC"), a subsidiary of Barrick Gold Corporation, to consolidate 100 percent control of the Pinson Mine. The transaction will give Atna control of a high grade gold resource on the prolific Getchell gold belt of northern Nevada. Associated with the Pinson Agreement, the Company arranged a $20 million Credit Agreement with Sprott Resource Lending Partnership ("Sprott") to finance the Pinson acquisition. Gold absorbed on carbon in July 2011 was 3,163 ounces, a new internal production record for the Briggs Mine in California. Briggs produced $3.8 million in positive operating cash flow and $2.7 million of net operating profit. Drilling at North Main Briggs and Deep Briggs continued to encounter significant gold mineralization and resulted in the expansion of both zones. Expansion projects increasing leach pad and gold plant capacity were completed on budget in June and have increased daily gold production during July and August. The Company sold its interest in the Atlanta property in Nevada for $0.7 million in cash and stock and retained a three percent net smelter return ("NSR") royalty interest; and The Company optioned out three Canadian properties for total potential future payments of $1.6 million plus various NSR royalty positions ranging from 0.5 to 1.3 percent.
Atna recorded net income of $1.1 million on revenues of $11.8 million. This compares to a net loss of $2.8 million on revenues of $6.7 million for the three months ended June 30, 2010. For the three months ended June 30, 2011, cash and cash equivalents were $4.6 million, a decrease of $1.7 million from March 31, 2011. The company's address is 14142 Denver West Parkway, Suite 250, Golden, CO 80401, (303) 278-8464, fax: (303) 279-3772.