Vote for the Concerned Shareholder's Nominees and Follow a New Path to
Enhance Shareholder Value
MONTREAL, April 14 /CNW Telbec/ - The Concerned Shareholders (the "Concerned Shareholders") announced today that they have mailed an information circular (the "Circular") to the shareholders of Atna Resources Ltd. ("Atna") (TSX:ATN) seeking to elect three highly qualified nominees to the
Atna board of directors (the "Board") at the Annual General Meeting of Shareholders to be held on May 6,
2011 (the "Meeting") to replace three members of the current Board.
The reasons the Concerned Shareholders are taking this action include
The current Board has delivered poor operating results and has issued
common shares at historically low prices and at a significant discount
to the market.
Atna's share price has declined approximately 65% since its high in
2008. At the same time, stock markets have been strong and during the
same time period the price of gold has increased from approximately
US$880 per ounce to a record high of more than US$1470 per ounce on
April 8, 2011.
The Concerned Shareholders do not believe that Atna can create value for
shareholders by building and operating a mine that produces materially
less gold than forecast with cash production costs that are
substantially higher than forecast.
If the results from the Briggs gold mining property would have been
known at the time of making the capital commitment, Briggs would never
have been built.
The value destruction to shareholders has been amplified by Atna
completing a material financing at a significant discount to market.
Since 2008 the Board has also raised funds through a US$14.5 million
bond offering and a US$1.5 million convertible debt offering diluting
shareholders by almost 35% in 3 years.
There is no indication whatsoever of any clear strategy for value
enhancement and thus the Concerned Shareholders believe that a change
of leadership is necessary.
Additional reasons and details of the purpose and goals of the Concerned
Shareholders are set out in the Circular, which has been filed and can
be viewed on SEDAR at www.sedar.com.
"As the largest beneficial shareholder of Atna with over 12,310,133
shares of Atna, representing approximately 12.2% of the outstanding
Atna shares, we are deeply concerned with the current leadership at
Atna. The current Board has had its chance to bring value to Atna and
has failed," stated Lloyd Miller of the Concerned Shareholders.
We ask for your support at the Meeting to replace three members of the
current Board. We are nominating three new independent directors and
are confident that they will bring accountability and leadership, add
value and protect the interests of all shareholders. Our nominees will provide an injection of new ideas and
strategic perspectives to Atna. We believe that by acting as the
catalyst on behalf of the many suffering shareholders who want to see
the decline in stock price halted and sustainable growth for Atna
created, all shareholders will benefit.
We urge you to review the Circular, which has been mailed today and to
submit the enclosed GOLD form of proxy as soon as possible so your vote for change can be
counted at the Meeting.
IN ORDER TO BE DEPOSITED WITH ATNA'S REGISTRAR AND TRANSFER AGENT IN
TIME TO BE USED AT THE MEETING, YOUR GOLD PROXY MUST BE RECEIVED BY OKAPI PARTNERS PRIOR TO 10:00 A.M. (PACIFIC
TIME) ON MAY 3, 2011.
EVEN IF YOU HAVE ALREADY VOTED IN FAVOUR OF MANAGEMENT, YOU MAY CHANGE
YOUR VOTE BY COMPLETING AND SUBMITTING A GOLD PROXY DATED LATER THAN YOUR PREVIOUSLY SUBMITTED PROXY
SOURCE LLOYD I. MILLER, III
For further information:
If you have any questions or require assistance in completing or returning the enclosed GOLD form of proxy, please call:
Okapi Partners LLC
437 Madison Avenue, 28th Floor
New York, New York
NORTH AMERICAN TOLL-FREE