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Strategies & Market Trends : The Ego Forum -- Ignore unavailable to you. Want to Upgrade?

To: hubris33 who wrote (11979)	3/27/2013 9:13:44 AM
From: loantech	Read Replies (1) \| Respond to of 12175

Veris Gold to mill Atna's Pinson ore at Jerritt Canyon Ticker Symbol: C:VG C:ATN Veris Gold to mill Atna's Pinson ore at Jerritt Canyon Veris Gold Corp (C:VG) Shares Issued 107,641,344 Last Close 3/26/2013 $1.50 Wednesday March 27 2013 - News Release Also Atna Resources Ltd (C:ATN) News Release Mr. Randy Reichert of Veris Gold reports VERIS GOLD ENTERS INTO A TOLL MILLING AGREEMENT WITH ATNA RESOURCES INC. Veris Gold Corp.'s Veris Gold USA Ltd. has entered into a toll milling agreement with Atna Resources Inc., a subsidiary of Atna Resources Ltd., to process ore from the Pinson mine at the Jerritt Canyon mill located in Elko county, Nevada. The Jerritt Canyon Mill is operated by Veris Gold USA Ltd., a wholly-owned subsidiary of Veris Gold Corp. (the "Company" or "Veris"). The toll milling agreement with Atna Resources Inc. ("Atna") has a one year term. Under the terms of the agreement, ore produced from the Pinson Mine, located nearby in Humboldt County, Nevada, will be delivered to the Jerritt Canyon Mill for processing. Atna will pay to Veris a toll milling fee that will be adjusted on a quarterly basis to reflect any changes to input costs associated with processing the ore. The toll milling agreement is structured so that all dore produced from the ore will remain the property of Atna throughout the process and the associated toll milling fee charged to each ton will be treated as a credit to Jerritt Canyon operating costs. Randy Reichert, Co-CEO and COO of Veris stated, "This agreement is a win-win situation with our gold producing neighbor in Nevada. Processing third party ores makes excellent use of the upcoming excess capacity at the Jerritt Canyon Mill as we gradually phase out the low grade stockpile ore. This provides the Company with excellent revenue which will increase our positive cash flow from mining and processing operations. Jerritt Canyon's operations are largely fixed-cost, so making use of the additional capacity will bring down the operation's cost per ounce considerably. We expect to start toll milling early in Q2 2013 and low-grade stockpiles will be used in Q2 2013 to provide 100% of the necessary mill feed." "This agreement provides additional processing flexibility with a smaller lot size for Pinson and an outlet for our oxide-sulfide transition ores. We look forward to a positive working relationship with Veris", stated James Hesketh, President and CEO, Atna Resources. Veris is presently evaluating other ores and concentrates to determine which are best suited to being processed with the Company's surplus processing capabilities. We seek Safe Harbor.

To: hubris33 who wrote (11979)	4/13/2013 10:47:48 AM
From: hubris33	Read Replies (1) \| Respond to of 12175

Oh look! More sub-prime borrowing out of Veris Gold. ........... ................ verisgold.com Veris Gold Announces US$ 10 Million Loan Vancouver, BC – April 12, 2013 – Veris Gold Corp. (TSX: VG) (Frankfurt Xetra Exchange: NG6A) (the "Company"), is pleased to announce that the Company has secured financing in the form of an eight-month senior unsecured promissory note (the “Note”) with a principal sum of US$10,000,000 (the “Principal”). In connection with the Note, the Company will issue 3,400,000 common share purchase warrants (the “Warrants”). The Warrants will have an exercise price of US$1.80 per Warrant and will expire five years from the date hereof. The Company intends to use the proceeds to complete development of the Starvation Canyon Mine and to start underground development of the Saval 4 portal, both located on its Jerritt Canyon property in Nevada. Starvation Canyon Mine commenced production on April 6, 2012 at approximately 300 tonnes per day; with funds from the Note, additional development will be completed to increase production to the targeted 600 tonnes per day by the end of June. Saval 4 development is scheduled to commence in May 2013 and this zone is expected to deliver an average of 300 tons per day in the second half of 2013, bringing the total for the SSX mining complex to 1,500 tons per day. Pre-production development is expected to be approximately $1 million. The increased production at Jerritt Canyon from Starvation Canyon and Saval 4 will provide additional revenues and cash flow to the Company. The Note will bear interest at a rate of 9% per annum and will mature eight months from the closing date (the “Maturity Date”). From and after the Maturity Date or at the election of the Lender after an Event of Default (as defined in the Note) whether or not the maturity has been accelerated, the Note will bear interest at a rate of 1.75% per month(Ed Note:21% per annum), and at the option of the Lender, the Principal may be converted into common shares of the Company (the “Conversion Shares”) based on a conversion price equal to the greater of (a) CDN$0.75 and (b) the Market Price (as defined in the TSX Company Manual) of the Company’s common shares discounted by 5% per Conversion Share (the “Conversion”). The ability of the Lender to exercise its option to convert the Principal into common shares remains subject to TSX approval at the time of the Conversion. The Company also paid a finder’s fee equal to 4% of the aggregate gross proceeds to Casimir Capital Ltd. (“Casimir”) in connection with the Note transaction, and also issued Casimir 100,000 common share purchase warrants with an exercise price of $1.85 and a term of two years from the closing date of the Note financing. This news release was reviewed and approved by the Company's COO, Randy Reichert, M.Sc. P.Eng., the Qualified Person under NI 43-101 for purposes of this release. About Veris Gold Corp. ******************************************************************* er, ah... a few things: 1) When does this company stop raising money and start MAKING money? stop the dilution? 2) Wonder what effect those 4.3MM purchase warrants have on the share price? Will they act as a "cap" on the share price as the holder attempts to short the shares such that they "lock in" profits. 3) Why so many terms for what happens in the case of a default, are they expecting said default? This looks like a Credit Card agreement- you default we raise your rate to 21%! Veris, like others does not fair well with 1450 POG. Oh sure I see they report "cash costs" of around 1,000 per ounce. But let's look at costs from the perspective of the new "all-in, sustaining cash costs." 4Q2012 Veris produced 31,754 oz divide that by the Cost of Goods Sold and one gets 1142/ ounce. 1272/oz for the year. Add in the DDA expenses (costs previously sunk into the project for those ounces) and costs go to 1256/oz in 4Q and 1386/oz 2012. Add in G&A (who can operate without a headshed?) and costs are 1325/oz** 4Q and 1465/ounce 2012. So the question is can Veris avoid default with POG in the 1400s? At 1450 POG Veris has a "margin" of 125 per ounce. At max production of 40K oz/Q that's only $5M. What if the POG dips to the GS predicted 1100 level. What then? <edit> Oh, and just found it....looks like Veris has to deliver 60,000 ounces this year to their gold hedges. So the revenue from those 60,000 ounces is Spot minus -850 per ounce. With POG hovering near all-in costs, it looks like that represents a -$51MM hole for Veris for the year. </edit> Now Veris isn't the only company that is going to see hard times with POG this low. All of those "marginal" projects with < 1 gpt and high costs are going to take a hit on the 2Q reports that come out in August. Maybe if the POG is up on "seasonality" then investors ignorr it? Cavet emptor