Peruvian shareholders approve Patriot merger
Peruvian Gold Ltd PVO
Shares issued 15,227,466 Nov 2 close $0.87
Fri 3 Nov 2000 News Release
Mr. David Henstridge reports
Peruvian Gold's shareholders have approved the plan of arrangement with
Patriot Computer Corp. at the company's extraordinary meeting of
shareholders held on Oct. 30, 2000. Further, the company has been advised
that Patriot's shareholders approved the arrangement at a special
shareholder's meeting also held on Oct. 30, 2000. Peruvian is now
proceeding with the closing of the transaction, as shareholders were
advised at the meeting that all conditions precedent are to be removed on
or before the closing date of Nov. 15, 2000. The directors are highly
confident that the financing conditions precedent will be removed. The
transaction requires the approval of the Canadian Venture Exchange and the
court.
As announced in Stockwatch Aug. 2, 2000, the company will continue into
Ontario under the name of Patriot Computer Corp. (PCC), with the
shareholders of the company receiving one share of PCC for each 3.25 shares
of the company surrendered. The shareholders of Patriot will transfer to
PCC their shares of Patriot in exchange for PCC shares, on a 1:1 basis. As
a result, PCC, which will be listed on the CDNX and own Patriot, will be
held 20.5 per cent by former shareholders of the company. PCC will be
located in Markham, Ont., and be managed by Patriot personnel.
Also under the arrangement, the Peruvian mining assets of the company and a
minimum of $300,000 will be transferred to a new corporation, Tumi
Resources Ltd., which will continue the exploration and development of the
Peruvian mining assets. Pursuant to the arrangement, the shareholders of
the company will receive one share of Tumi for each five shares held in the
company. Patriot shareholders will not be issued shares of Tumi. On
completion of the arrangement, Tumi proposes to complete a financing to
raise $600,000 at 30 cents per share. Canaccord Capital Corp. is acting as
sponsor to the CDNX for both PCC and Tumi.
Silvertip project
The company has given notice of withdrawal from the Silvertip project,
located in Northern British Columbia. The 1999/2000 program financed by the
company successfully proved that the Silvertip deposit is a carbonate
replacement with the recognition and confirmation of multiphase, high-grade
feeder style massive sulphides. However, the program did not achieve one of
the key objectives in identifying sufficient additional tonnage of proven
ore to justify a production decision at current metal prices. In order to
add more tonnes, a program in excess of $5-million is needed to complete
underground development access, followed by extensive underground pattern
drilling. Success of this program cannot be guaranteed and due to the
significant financial commitment required, the poor market conditions and
significantly, the change of business direction of the company, the
directors have resolved to return the project to Imperial Metals Corp.,
thereby terminating the company's option to earn an interest in this
project.
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