Press Release:
REDBIRD GOLD CORP.
Trades on the Alberta Stock Exchange, Symbol RBD.A
TORONTO, June 19 /CNW/ - During the past several months, Redbird has been
attempting to obtain a receipt for a prospectus filed with the Alberta
Securities Commission (``ASC'') and other securities commissions. The intended
purpose of the prospectus was to obtain financing for the four projects
approved in 1996 by the majority of the disinterested shareholders of Redbird,
namely:
1 . the take-over of Karma Albanian Mining Limited and Skenderbeg
Mining Co. Limited with their interests in exploration
properties in Albania,
2. continuing exploration at its optioned Ontario King Bay
property (where related parties retained a 13% interest in 39
claims optioned to Redbird),
3. preliminary exploration at its optioned Ontario Melchett Lake
property (where related parties retained a 33% interest), and
4. preliminary exploration at its Red Lake property in Ontario
held under option from third parties.
The Karma/Skenderbeg take-over, having been extended for about 6 months,
expires on June 30, 1997. As those companies must commence exploration of
their properties to maintain their Albanian options in good standing, and
because regulatory approval from the ASC has not been obtained for Redbird's
financing proposal with respect to the Albanian properties, Redbird, with
regret, has advised Karma/Skenderbeg and the ASC and The Alberta Stock
Exchange (``ASE'') that the proposed take-over will not be completed and
shares deposited to the take-over offer will be returned to their owners on or
before the June 30, 1997 expiry date.
With respect to the Ontario King Bay and Melchett Lake optioned
properties, the ASC has advised Redbird's directors that the options to
acquire those properties from related parties are not presently acceptable and
may not comply with ASC policies. Accordingly, the related parties will (a)
voluntarily surrender to Redbird their 13% retained interest in 39 of the 45
claims at the King Bay property (thereby leaving Redbird with an 80% interest
under option), and (b) terminate Redbird's option (which is now in default) on
the Melchett Lake property.
Thus, Redbird's remaining property interests under Option will be (1) an
80% interest in 39 of the 45 claims at the King Bay property plus a 100%
interest in the three claims staked by Redbird and a 50% interest in three
other claims acquired by Redbird, and (2) a 100% interest (subject only to the
third party optionees' interest) in the Ontario Red Lake property. The
Melchett Lake property will revert to a company owned by related parties,
including the directors of Redbird, as previously disclosed to the Redbird
shareholders.
The ASC and ASE have been advised of these events.
With the removal of the Karma/Skenderbeg take-over, the removal of the
13% related party interests in 39 of the 45 claims in the King Bay property,
the surrender of the Melchett Lake property option, with its 33% related party
interest, Redbird proposes to amend its prospectus filing with the ASC to
provide for an issue of flow-through and regular shares to raise approximately
$2 - 3 million. The financing via this amended prospectus, if it obtains
regulatory approval, will be used to provide for further exploration of
Redbird's Ontario optioned properties at King Bay and Red Lake.
The Redbird directors are hopeful that with the abandonment of the
Karma/Skenderbeg take-over, the removal of the related party interests at King
Bay and the surrender of the Melchett Lake option, the amended Redbird
prospectus will be acceptable to the ASC and ASE.
With the implementation of these changes to meet ASC concerns, Redbird
proposes to apply immediately to the ASE to lift its halt on the trading of
Redbird shares on the ASE. It is anticipated that such trading will commence
on the morning of Friday, June 20, 1997.
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For further information: about Redbird Gold Corp., please contact Ronald McKeown, (416) 943-0011, by
fax (416) 943-0562, by Email at londond(at)ionsys.com or by mail to 121 King Street West, Suite 810,
Box 13, Toronto, Ontario, M5H 3T9 |
