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Hi All,
I'm trying to get some opinion on Big Valley Resources. Its an interesting company that has both mining properties and softwood lumber processing prospects. The companies shares were halted a couple of months ago and have returned to trading at fairly decent volume and price gain. Here is their latest news release.
Cheers,
Craig
BVÿÿ1998-04-24 ÿÿ(provided courtesy of Canadian Corporate News.)
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Big Valley Resources: Wood Products Agreement Amended, Financing Negotiations Ongoing
VANCOUVER, BRITISH COLUMBIA--By agreement dated December 21, 1997
with H.D.L. Wood Industries Inc. ("HDL"), Big Valley Resources
Inc. ("Big Valley") was granted the exclusive right to finance a
new wood hardening and fine veneer manufacturing company to be
located in British Columbia. Under the terms of the agreement,
Big Valley was required to provide financing of up to $25 million
(US), including an irrevocable commitment to finance the first $15
million (US) by March 31, 1998. Pursuant to the policies of the
Alberta Stock Exchange (the "ASE"), the financing obligation on
the part of Big Valley amounted to a "change of business"
transaction and trading in the shares of Big Valley was halted on
December 22, 1997.
As an irrevocable commitment to finance the first $15 million (US)
phase of the new company would not be received prior to March 31,
1998, Big Valley renegotiated the terms of the agreement with HDL.
Under a March 20, 1998 amendment, Big Valley was granted an
extension until September 30, 1998 to secure the $15 million (US)
financing. However, as a compromise, Big Valley was required to
give up its exclusive right to finance the new company. Without
an exclusive right to finance the new company, the amended
agreement no longer falls within the "change of business" policies
of the ASE. Accordingly, Big Valley shares will resume trading on
April 27, 1998.
Since early January of 1998, Big Valley has been active in its
attempts to locate and secure the necessary financing for the new
company. Negotiations are ongoing with a number of private and
institutional lenders in Canada, the United States and Europe.
Management is confident that it will be successful in financing
the new company as initially planned. Any future financing will
be subject to ASE and shareholder approval.
Big Valley and HDL are proceeding with the development and plans
for future production from their wood hardening plant located in
Lappeenranta, Finland. The equipment purchased from a re-saw mill
as announced on March 4, 1998 will be set up at one of two
potential sites on Vancouver Island. Once operational, the re-saw
mill will supply some of the milled lumber to be processed at the
Lappeenranta hardening plant. The harding plant and the re-saw
mill equipment are fully owned by Big Valley and HDL and represent
a separate business venture from the proposed $25 million (US)
wood products company referred to above.
Over the past winter, Big Valley has increased its land position
in the Mount Polley area by acquiring options to earn 100 percent
interests in the Hugger and the Buck mineral claim (see March 4,
1998 news release). In addition, Big Valley has renegotiated the
payment terms of a December 15, 1994 option agreement for the MT
mineral claims. These claims are located in the Mount Polley area
and were optioned from Black Bear Mining Ltd. ("Black Bear") and
R.T. Heard & Associates Ltd. ("Heard"). Under an April 6, 1998
amendment to the December 15, 1994 agreement, Big Valley will
issue an aggregate 125,000 common shares to Black Bear and Heard
to fully exercise the option. Under the original agreement, Big
Valley was required to make bi-annual payments of $25,000 to Black
Bear and Heard commencing on June 15, 1997 and continuing until
the MT claims were placed into commercial production. The Hugger,
Buck and MT agreements all remain subject to final ASE acceptance.
Over the past winter Big Valley has also carried out a thorough
review and correlation of all available geological data related to
its mineral properties. Twelve specific exploration targets have
been identified. Several mining companies have expressed an
interest in possible joint venture proposals on a number of the
mineral properties and preliminary negotiations are ongoing.
Big Valley also announces that a 600,000 unit private placement
announced on December 22, 1997 has been cancelled.
Big Valley further announces that subject to ASE acceptance, it
has entered into an investor relations agreement with Dunhill
International Communications Corp. ("Dunhill") of Vancouver.
Dunhill will receive a monthly fee of $4,000 and has been retained
for an initial period of three months.
ON BEHALF OF THE BOARD
Lloyd Tattersall, President
-30-
FOR FURTHER INFORMATION PLEASE CONTACT:
Big Valley Resources Inc.
Mr. Lloyd Tattersall
President
(250) 243-2337
or
Ms. Kelly MacDonald
Shareholder Communications
(604) 922-6998
The Alberta Stock Exchange has neither approved or disapproved the
information contained herein.
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