Investor may rescue bankrupt miner

Thursday, Aug. 5, 1999 | 11:54 a.m.

Henderson-based Alta Gold Co. has filed a motion to dismiss its Chapter 11 bankruptcy, citing an offer from an investor to buy an interest in one of its mines.

Margo Bergeson, director of investor relations for Alta Gold, did not identify principals of the private investment group that wants to acquire a 40 percent interest in the company's Olinghouse site.

The Olinghouse mine is about 35 miles east of Reno. Olinghouse is a new mine and hasn't reached full production.

The sale of the interest in the Olinghouse property is subject to the court's ruling. Alta has petitioned the U.S. Bankruptcy Court in Reno to conduct an expedited hearing by Friday.

Alta said that if the motion to dismiss is not granted and the sale is not completed, "there is no guarantee that the company will be able to continue in operation."

Alta said the sale would generate enough funds to pay creditors, estimated at $26 million.

archive