Any comments on today's press release. Is it good or bad or neutral? Tuesday April 22 8:11 AM EDT - Source: Alta Gold Co.
Alta Gold Co. Announces $8.5 Million Loan Agreement
HENDERSON, Nev., April 22 /PRNewswire/ -- Henderson, Nevada: Alta Gold Co.(Nasdaq:ALTA) today announced that it has entered into an $8.5 million loan agreement with Gerald Metals, Inc., located in Stamford, Connecticut, and the New York branch of BHF-Bank Aktiengesellschaft.
The loan bears interest at LIBOR plus 2% and the principal is repayable in fifteen equal monthly installments beginning January 31, 1998, or upon receipt of project financing for Olinghouse, whichever occurs earlier.
The purpose of the loan is to pay off the remaining balance due under a $5.0 million working capital facility with Gerald Metals, to provide funds needed to help put Griffon into production and for general working capital requirements.
Mr. Robert N. Pratt, President and Chief Executive Officer of Alta Gold, stated: ``We are very pleased to have finalized this $8.5 million loan agreement as well as the $10.0 million private placement which we recently closed. The fact that we have been able to obtain these financings in such a depressed gold market speaks volumes about the strength of both our operations and business plan, not to mention the future prospects for our Company. These funds will enable our company to continue our aggressive drilling program at these and other properties and to complete the permitting of Olinghouse, Griffon and Copper Flat.''
The Company is engaged in the exploration, development, mining and production of gold on properties in Nevada. The Company also has three base metals properties in the western United States which are in various stages of development. |
