Atna Resources and Canyon Resources have announced a transaction whereby Atna will acquire all of the issued and outstanding shares of common stock of Canyon. Atna and Canyon believe that the combination will benefit both companies by creating a strong platform for growth with the following characteristics and synergies:
- A multi-million ounce gold company highly leveraged to gold price
- Near term gold production from Briggs and Reward projects to complement development at Pinson
- Upside opportunity from complementary pipeline of gold exploration and development projects
- Focus on gold in the western USA.
David Watkins, President and CEO of Atna: “The transaction complements Atna’s exciting development opportunity at the Pinson gold mine in Nevada with Canyon’s near-term production projects at the Briggs gold mine in California and the Reward project in Nevada. Canyon also brings a number of complementary exploration and development properties, which combined with Atna’s portfolio of prospects, creates an impressive pipeline of opportunities in the merged entity. Another key benefit to both Atna and Canyon shareholders is the creation of a powerful and balanced team of experienced mining professionals, which results from combining the complementary skill sets of the people in both companies. Jim Hesketh and I worked together for 14 years dating back to our days at Cyprus Amax in the 1990s. Jim has been a director of Atna for six years and is in a unique position to understand and appreciate the value of our assets and the growth platform we are creating.”
Jim Hesketh, President and CEO of Canyon: “This transaction provides an attractive premium to Canyon’s shareholders, while affording them the opportunity to participate in a growth-focused gold company through their investment in Atna. The combined company will have the financial strength and access to capital markets to advance Briggs and Reward into production. I am also excited about working with David Watkins again. I know him to be a superb individual who has a high level of integrity. I feel this is an excellent opportunity for Canyon.”
Watkins will continue to be the CEO and Chairman of the combined company, while Hesketh will join the management team in the role of President and COO. David Suleski, Canyon’s Vice President and CFO, will assume the same role at Atna. Bill Stanley and Bonnie Whelan of Atna will continue in their roles respectively as Vice President, Exploration and Corporate Secretary.
Atna is building a successful gold exploration, development and mining enterprise in Nevada. Atna presently holds a 70% interest in the high grade Pinson gold deposit, which is being developed by Pinson Mining Co, a wholly owned affiliate of Barrick Gold. Barrick has the right to increase its’ interest in the project to 70% (and reduce Atna’s share to 30%) by spending $30 million on the project prior to April 2009. Atna also holds a portfolio of exploration projects in Nevada, Canada, and Chile.
Canyon owns the Briggs gold mine and four satellite deposits in California; the Reward Gold deposit near Beatty, Nevada; the Seven-Up Pete Gold deposit near Lincoln, Montana; and a portfolio of Nevada gold exploration properties. To date, the company has developed in-place mineralised material on its properties containing over 1.9 Moz of gold and recognises substantial additional exploration potential. Canyon has developed re-start and underground test mining plans for its permitted Briggs mine and is completing permitting and feasibility study work at the Reward project.