HERES THE NEWS ON IGCO, GDSA & VGAA
INTERGOLD CORPORATION (OTC BB-IGCO)
FOR IMMEDIATE RELEASE Newport Beach, California April 16,1998
INTERGOLD CORPORATION ANNOUNCES
$5,000,000 PREFERRED SHARE FINANCING
Michael B. Mehrtens Ph.D., President of INTERGOLD CORPORATION (the "Company") is pleased to announce a preferred share financing in the amount of $5,000,000 US through a group of accredited European investors. The same accredited investors have also made arrangements to fund two other OTC Bulletin Board public companies with a further $2,000,000 US; Goldstate Corporation (symbol GDSA) and Vega-Atlantic Corporation (symbol VGAA) have similar gold mining exploration claims in proximity to the Intergold Corporation claims.
The Company's funding is expected to close in two stages w' )th the first $ 1,000,000 to be received on or before May 15, 1998, and $4,000,000 to be received on or before September 30, 1998.
The Company is offering 100 units of securities at $50,000 per unit with each unit consisting of 25,000 shares of Series A Cumulative Convertible Preferred Stock. and 25,000 Warrants to purchase 25,000 shares of restricted common stock at $2.00 per share, expiring on April 6, 2001. Each share of Series A Convertible Preferred Stock is convertible at any time into one share of restricted common stock, and all then accrued and undeclared dividends is convertible into restricted common stock at any time at the option of the holder, at the conversion price of $2.00 per share. Preferred share dividends will accrue cumulatively at the rate of 20% per year.
Through the Company's subsidiary, "International Gold Corporation" the Company is exploring a large gold deposit in the State of Idaho - the Blackhawk I Gold Project, which is comprised of 230 contiguous unpatented lode mining claims in Lincoln County, Idaho. The Company has identified a mineralized zone approximately 7,000 feet long and 3,000 'eet wide. Average gold values of all drilling conducted to date on the property is .1 5 ounces opt.
The funding will be utilized for project development financing of Intergold's Blackhawk I claims that have been the subject of ongoing surface sampling and drilling since July 1994. Funding will enable completion of Intergold's work program that will include 75,000 feet of drilling over 250 drill holes to outline the geological resource in detail.
Bateman Engineering Inc. has been retained to provide independent evaluation and confirmation of some of the Company's existing drilling and assay infon-nation through a preliminary program of drilling, detailed assay testing, and analytical work. Two core holes have been drilled as twins of the holes M-8 and M-9 in October, 1997 under the supervision of Bateman Engineering, Inc. Drill cores have been maintained under strict chain of custody protocol by Bateman Engineering, Inc. Bateman Engineering, Inc. is expected to report on their initial scope of work in the next few weeks.
Contact: Intergold Investor Relations E-mail: investor@intergoideorp.com Phone: (888) 848-7377
Apr-16-98 06:38A 604 739-1411 P.03
GOLDSTATE CORPORATION
FOR IMMEDIATE RELEASE Bellingham, Washington
(OTC BB -GSTT)
April 16,1998
GOLDSTATE CORPORATION ANNOUNCES
$1,000,000 PREFERRED SHAI@E FINANCING
GOLDSTATE CORPORATION (the "Company') is pleased to make the following announcements:
The Company announces that an arrangement has been reached with a group of accredited European investors to provide a preferred share financing to the Company in the amount of $ 1,000,000 US. The sameaccredited investors have also made arrangements to fund a further $6,000,000 US to two other OTC Bulletin Board public companies that have similar gold mining exploration claims in the same proximity to Goldstate's Blackhawk H claims, Under arrangements in place, Vega-Atlantic Corporation (symbol VGAA) will receive S 1,000,000, while Intergold Corporation (symbol IGCO) will receive $5,000,000 in funding from the same group of investors.
The Company is offering I 00 units of securities at $ 1 0,000 per unit with each unit consisting of 20,000 shares of Series A Cumulative Convertible Preferred Stock, and 20,000 Warrants to purchase 20,000 shares of restricted common stock at $.50 per share, expiring on April 6, 200 1. Each share of Series A Convertible Preferred Stock is convertible at any time into one share of restricted common stock, and all then accrued and undeclared dividends is convertible into restricted common stock at any time at the option of the holder, at the
conversion price of $.50 per share. Preferred share dividends will accrue cumulatively at the rate of 20% per
year.
The Company owns a 5 1 % interest in 327 of the unpatented lode claims of Intergold Corporation known as the Blackhawk II claims. The Blackhawk H claims' mineralization occurs along two intersecting north west and north east directed linears which aggregate 7.5 linear miles. Results of surface sampling on the Blackhawk 11 claims have provided excellent preliminary indications for gold with surface samples to date providing gold values ranging between .0 5 - II opt.
The claims are in the same proximity to those claims staked by lntergold Corporation (known as the Blackhawk
I claims) that have been the subject of Intergold Corporation's ongoing drilling program within the area's moonstone caidera.
The Company's funding is expected to be completed in two stages with the first $500,000 to be received on or
before May 15, 1998, and $500,000 to be received on or before September 30, 1998. Funding to be received
will be utilized to provide further surEace satnnlin,, and a preliminary dr;.'.I.ing prograrp..
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Contact. Investor Relations E-mail: investor*goldstatecorp.com Phone: (888) 228-5526
Ap,r-16-98 06:37A 604 739-1411 P-02
FOR IMMEDIATE RELEASE Newport Beach, CA April 16,1998
VEGA-ATLANTIC CORPORATION (OTC BB - VGAA)
VEGA-ATLANTIC CORPORATION ANNOUNCES
$1,0009000 PREFERRED SHARE FINANCING
VEGA-ATLANTIC COPPORATION (the "Company") announces that an arrangement has been reached with a group of accredited European investors to provide a preferred share financing to the Company in the amount of S 1,000,000 US. The same accredited investors have also made arrangements to fund a further $6,000,000 US to two other OTC Bulletin Board public companies that have similar gold mining exploration claims in the same proximity to the Vega-Atlantic Corporation claims. Under arrangements in place, Goldstate %-corporation (symbol GDSA) will receive $1,000,000, while Intergold Corporation (symbol IGCO) will receive $5,000,000 in funding from the same group of investors.
The Company is offering I 00 units of securities at S I 0,000 per unit with each unit consisting of 20,000 shares of Series A Cumulative Convertible Preferred Stock, and 20,000 Warrants to purchase 20,000 shares of restricted common stock at $.50 per share, expiring on April 6, 2001. Each share of Series A Convertible Preferred Stock is convertible at any time into one share of restricted common stock, and all then accrued and undeclared dividends is convertible into restricted common stock at any time at the option of the holder, at the conversion price of $.50 per share. Preferred share dividends will accrue cumulatively at the rate of 20% per year.
The Company owns 173 unpatented lode mining claims situated in Camas County, Idaho, The claims known as the Vega Claims are located in the same proximity to the Intergold Corporation project claims that have been the subject of ongoing drilling and sampling in the area's miocene-pliocene caldera. The Vega Claims are north of the Intergold Corporation's Blackhawk project in the same volcanic caidera. Assay testing of samples taken from the claims area show gold at excellent values. The Vega Claims are three and one-half miles long and about 2,000 feet wide with gold values varying between .06 -.21 ounces per ton (opt). The gold values obtained to date were by fire assay of the zinc sponge precipitates from leach solutions. This zone is a mirror image of Intergold's Blackhawk occurrence at a similar stage of exploration.
The Company's funding is expected to close in two stages with the first $500,000 to be received on or before
May 15, 1998, and $500,000 to be received on or before September 30, 1998. Funding to be received will be utilized to provide further surface sampling and a preliminary drilling program. |
