Atna Resources announced it filed for relief under chapter 11 of the Bankruptcy Code in the U.S. Bankruptcy Court for the District of Colorado. The company said it intends to restructure its business by attempting to sell assets, resolving various challenges relating to Atna’s main assets, and seek to modify its capital structure.

The company and Waterton Precious Metals Fund II Cayman, Atna’s pre-petition lender under a secured facility ($19 million in principal is owed), have negotiated a consensual use of the company’s cash and have entered into a debtor-in-possession financing arrangement which, upon approval by the Bankruptcy Court, will allow the company to maintain business-as-usual operations during the restructuring process.

“The low gold prices in 2015, the continued indifference in the market for gold company equities, a lack of capital in the mining sector, a lack of development capital and operating issues resulting in a significant shortfall in third quarter gold production at the Pinson mine, and a depressed market for the sale of idled mining equipment all negatively impacted the company’s outlook and led to the company’s current liquidity problems,” said James Hesketh, president and CEO.