NWV-VSE is still undiscovered which is the best time to jump in. They have achieved access to significant financing and I can see NWV moving quickly as soon as I.R kicks in. Call Shaun at 1-604-688-3544.
Newcoast reviews ramifications of R. Hutchinson deal
Newcoast Silver Mines Ltd NWV
Shares issued 6,439,697 Aug 12 close $0.20
Tue 24 Aug 99 News Release
Mr. Donald Shilton reports
The company wishes to provide this update on the transactions announced in
Stockwatch June 16 and July 19, 1999.
Since its July 19 news release, the company has met and corresponded with
officials of the Vancouver Stock Exchange to review the structure and
ramifications of the proposed transaction with Richard A. Hutchinson of
Texas.
The company has been informed by the exchange under present VSE rules, both
or either of the transactions would amount to a change of business for the
company. The company is informed that to effect a change of business is a
major time-consuming and costly undertaking, during which time the exchange
would require the company to continue the halt of trading.
Therefore, the board of directors has dropped its interest in the
acquisitions as announced June 15, 1999, of the venture known as Interclean
de Mexico and of the oil industry supply company, Simtac International,
announced July 16, 1999, at this time.
The company is maintaining its interests in its Mexican mining concessions
and B.C. mineral properties and, as stated in Stockwatch June 16, is
pursuing a change of corporate focus by locating joint venture partners to
assist the company to maintain its current business of acquiring and
exploring existing (company owned) mining properties and other mining
properties.
Preliminary negotiations and feasibility considerations have begun with the
optionor of the Rio Tinto mining concessions, in which the company acquired
an interest in 1998 to explore the possibility of developing a copper
mining operation on the Rio Tinto property. The company is also in
negotiations to acquire an interest in graphite and barite mining
concessions, also in Mexico.
After negotiations with the Hudson Management Trust of Toronto, referred to
in the company's news releases of June 15 and July 16, it has now received
a letter of financing commitment from Bottom Line Financial of California.
The commitment to provide financing up to the value of $19.8-million (U.S.)
or $29-million (Canadian) by way of cash or assignment of corporate
guarantee notes (with various maturity dates) to support the company's
future plans for mergers and acquisitions. The notes have various maturity
dates over the next six years and will be available to the company to be
used to support a loan or sold for cash. The value of each transaction will
be determined at the time of assignment and each transaction will be
carried out on a private placement basis for an equity purchase of Newcoast
shares.
Bottom Line Financial is a trustee for the issuer of the notes. The company
has been provided information that indicates the corporate guarantee notes,
issued by a European financial institution with current balance sheet
assets in excess of $9-billion (U.S.) have been rated by Dun & Bradstreet
in the United Kingdom as 2AA minus and by the Bloomberg Composite Rating as
AAA.
The number and issuance price of the company's shares to be issued pursuant
to each private placement will be determined at the time each transaction
is concluded. The proceeds of the private placements are proposed to be
used to support future acquisitions, including the possible acquisitions of
the graphite and barite mining concessions, and possible expansion of the
Rio Tinto property. The company is currently anticipating a $2-million
(U.S.) to $3-million (U.S.) private placement from Bottom Line Financial,
which the company anticipates will involve the issuance of approximately 10
million to 15 million of its shares. |
