Can we pay for that in gold? Fasken Martineau represents Atna in novel debt offering
December 22, 2009
London (UK) - Fasken Martineau, a leading international business law and litigation firm, announced today that it represented Atna Resources Ltd. (TSX: ATN) in a private placement offering of US$14.5 million of Gold Participating Bonds that closed on December 9, 2009. Atna intends to use the proceeds of the offering for corporate purposes including the initiation of development activities of its Reward gold mine in Nevada.
"This is a novel structure for borrowing money – something of interest to many commodity businesses these days," said Thomas Wexler, a partner with Fasken Martineau in London who led the deal. "The company borrows money in the debt markets, but satisfies the repayment obligations in gold rather than in cash. It's essentially a securitised version of the old fashioned gold loan."
Atna plans to repay the loan with gold produced at its Briggs Mine in California. The Bonds, which mature on December 31, 2013, bear an annual interest rate of 10% on the declining principal balance. The Bonds will be redeemed in 16 equal quarterly instalments equivalent to the market value of approximately 814 ounces of gold per quarter based on a closing gold price determined prior to the end of each quarter. The quarterly payments will be converted to participating interests in a gold exchange-traded fund approximately equivalent to the value of ounces delivered.
The offering was arranged by Canaccord Adams Limited and CAT Brokerage AG. Canaccord Adams Limited also acted as placing agent in connection with the offering.
About Fasken Martineau
Fasken Martineau is a leading international business law and litigation firm. With over 650 lawyers, the firm has offices in Vancouver, Calgary, Toronto, Ottawa, Montréal, Québec City, London, Paris and Johannesburg. For additional information, please visit the firm's website at www.fasken.com.
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Stephen HastingsDirector of Communications +1 416 865 4370 +1 416 648 4076 (cell) shastings@fasken.com
Mathieu Rompré
Communications and Media Specialist +1 514 397 4349 +1 514 298 6739 (cell)
Estelle Giry
Communications and Media Specialist Europe / Africa +44 (0)20 7917 8602 +44 (0)7917 834 207 (cell)
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