Atna eyes Sheridan assets (April 23, 2003)

Vancouver — Atna Resources (ATN-T) and a well known private investor have signed a letter in principal paving the way for the junior to pick up $3.38 million in assets.

Under the deal, Atna will issue to J. Pat Sheridan up to 11.2 million shares, subject to adjustment, at an average price of $0.30 per share in three installments: 5 million shares on closing the transaction, 3.2 million shares by May 10, 2003, and 3 million shares by May 10, 2004. In return, Atna gets certain royalty accounts and other assets from Sheridan. Atna estimates the royalties, payments and hedge accounts have a total net present value of $3.38 million.

The realization of the assets into cash would take place over a period of less than 1.5 years. The final value 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", stated Sheridan.

Sheridan, through an affiliated company, Rimmer Mining Company, owns more than 10% stake in Atna and is thereby an insider under the rules of the Toronto Stock Exchange. This means, that the deal requires shareholder approval. The transaction is also subject to final Board approval.

"This represents an excellent opportunity for Atna and it’s shareholders to move the company forward with the backing and financial acumen of one of the most successful people in the mining industry", says Atna’s 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 (TNM Dec. 2-8,2002). Any proceeds from the transaction would be used to advance these projects and to look at other acquisitions.