Exhibit 99.1
ATLAS MINERALS INC. NEWS RELEASE
10920 W. Alameda Avenue 02-1
Suite 205 NQB Pink Sheets: ATMR
Lakewood, Colorado 80226 6.1 million shares outstanding
Tel: 303-306-0823 April 17, 2002
Fax: 303-306-1139
- --------------------------------------------------------------------------------
ATLAS EMERGES BANKRUPTCY - MAKES STRIDES IN REBUILDING UNDER NEW
CORPORATE STRUCTURE
- --------------------------------------------------------------------------------
Denver, Colorado - Atlas Minerals Inc. (the "Company") announced today its
financial results for the year ended December 31, 2001. The Company reports
current assets of $2.24 million and current liabilities of $.87 million, the
majority ($0.65 million) of which consists of payments to be made to creditors
as the result of future sales of certain non-operating assets.
Over the last several months the Company has successfully settled all
outstanding lawsuits it had against various insurance carriers for their failure
to cover certain environmental costs previously incurred by the Company. All of
these lawsuits arose as the result of the Company's need to permit and implement
remediation activities to mitigate alleged environmental impact at the Company's
past-producing uranium processing mill located in Utah. Since mid-November,
settlement agreements have been reached with eight such insurance carriers
resulting in net cash to the Company, after payment of legal fees and required
distributions to creditors, of approximately $1.2 million as of April 12, 2002.
The Company is also pleased to announce that effective December 31, 2001, the
United States Bankruptcy Court for the District of Colorado ordered that the
Chapter 11 bankruptcy proceeding, which the Company filed in September 1998, be
closed.
According to Mr. Gary E. Davis, President of the Company, "these successful
insurance settlements are a tribute to the hard work by the Company's staff,
insurance advisors, and legal counsel. With these proceeds, essentially all
residual payables to creditors associated with this environmental litigation
will be eliminated and, coupled with its emergence from bankruptcy, the Company
can now proceed with rebuilding into a profitable operating entity."
In a separate action, an agreement has been reached with certain Bolivian
entities for the assumption by them of all of the Company's remaining Bolivian
assets and liabilities associated with the Company's subsidiary, Arisur Inc.,
and its Andacaba mine/mill complex. Although the Company's previous management
had announced in March 2001 that it had defaulted on the loans to Arisur Inc.
and essentially walked away from these operations, there remained unquantifiable
liabilities associated with social payments to the miners. The Company believes
that this new agreement has now completely removed the Company from Bolivia and
all remaining uncertainties surrounding its previous operations there.
In September 2001, the Company made sweeping changes both in its management and
in the composition of its Board of Directors. It is the intention of the current
management to remain in the business of development and exploitation of natural
resource properties. Management's current efforts are being directed toward the
identification of possible acquisition opportunities of smaller-scale
properties, primarily in the sectors of industrial minerals, base metals,
precious metals and oil/natural gas.
Commenting further on the Company's status, Mr. Davis said, "these are exciting
times for Atlas. It is not every company that has the opportunity to start over
with such a clean balance sheet and with cash adequate to allow it to seriously
look at operating properties. I am pleased to be in the position to contribute
to raising Atlas from the ashes, a company (Atlas Corporation) that was first
listed on the NYSE in 1936 and that has such a rich heritage."
For further information contact Gary E. Davis, President and Chief Financial
Officer, at 303-306-0823.
On behalf of Atlas Minerals Inc.
"Gary E. Davis"
President and Chief Financial Officer
The statements contained in this release that are not historical facts are
forward-looking statements under the federal securities law. These
forward-looking statements are no guarantee of future performance, and involve
certain risks, uncertainties and presumptions that are difficult to predict.
Actual outcomes and results may differ materially from what is expressed or
implied by such forward-looking statements. The Company takes no obligation to
update publicly any forward-looking statements, whether as the result of new
information, future events or otherwise. This release is not an offer of
securities for sale in the United States; securities may not be offered or sold
in the United States without registration or an exemption from registration.