Thursday May 15 8:02 AM EDT
Company Press Release
Alta Gold Co. records $0.8 million extraordinary gain
HENDERSON, Nev.--(BUSINESS WIRE)--May 15, 1997--Alta Gold Co.
(NASDAQ/NM:ALTA) Thursday announced that it has recorded a one-time extraordinary gain in
the amount of $784,000, or 3 cents per share, on the early retirement of debt.
The transaction involved the early retirement of a $4.0 million zero coupon debenture due in 2008
(the debenture) which had a net book value of $1.6 million as of April 30, 1997.
The company paid the holder of the debenture cash in the amount of $750,000 in exchange for the
full and complete satisfaction of the debenture and the termination of an associated agreement
under which the holder of the debenture had the right to receive up to $4.0 million in royalties from
future production from the company's Copper Flat mine, which is a porphyry copper and gold
property located in Sierra County, N.M.
Robert N. Pratt, president and chief executive officer of Alta Gold, stated: ``Buying back the
debenture for essentially 50 cents on the dollar and terminating the related royalty agreement on
Copper Flat not only improves our present financial position, but more importantly, improves the
economics of Copper Flat by removing a future cash flow burden on this property.'' |
