Company Press Release
Alta Gold Co. Obtains Financing for Olinghouse
HENDERSON, Nev.--(BUSINESS WIRE)--May 12, 1998--Alta Gold Co. (Nasdaq/NM:ALTA - news) Tuesday announced that it has obtained a financing package for the company's first gold mine at Olinghouse.
The financing package consists of an $11.0 million term loan facility, a $6.0 million revolving credit facility and a $4.7 million equipment loan. The financing package was structured and arranged by Gerald Metals Inc.
Standard Chartered Bank, Credit Agricole Indosuez and Gerald Metals are the lenders on the term loan and revolving credit facility; U.S. Bancorp provided the equipment loan.
Alta Gold received the final permit to begin site development and gold mining at Olinghouse on May 8, 1998. Most of the mining equipment is already on site, and the construction of the Olinghouse crushing plant is well underway.
The company expects gold production to begin in August 1998 at an average rate of 100,000 ounces of gold per year over a period of at least five years. The average cash cost of production is expected to be less than $200/oz.
Alta Gold 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.
This news release contains statements that may be considered forward-looking statements within the meaning of the private securities litigation reform act of 1995, such as management's expectations regarding scheduled gold production from and the overall economics of the company's mining properties. Such forward-looking statements are inherently uncertain, and the actual results may differ from management's expectations. Further information on potential factors which could affect the financial condition and results of operations of the company are included in the filings of the company with the securities and exchange commission, including, but not limited to, the company's annual report on form 10-K for the fiscal year ended Dec. 31, 1997.
------------------------------------------------------------------------
Contact:
Alta Gold Co., Henderson
Margo Bergeson, 702/433-8525
------------------------------------------------------------------------
More Quotes and News:Alta Gold Co (Nasdaq:ALTA - news)Related News Categories: mining/metals |
