Attention Business/Financial Editors:
UPDATE ON ST. GENEVIEVE RESOURCES LTD. AND KWG RESOURCES INC.
MONTREAL, Dec. 22 /CNW/ - St. GeneviŠve Resources Ltd. (''SGV'') and KWG
Resources Inc. (''KWG'') provide an update of their situation since their
joint press release of December 5, 1997.
TRADING OF SHARES OF SGV AND KWG
--------------------------------
SGV and KWG have had meetings with each of The Montreal Exchange and the
Toronto Stock Exchange during which discussions took place concerning the
process to be followed in order to achieve a lifting of the trading
suspensions. In addition, SGV and KWG have made submissions to the Quebec
Securities Commission concerning the rescission of the cease trade orders
affecting their shares.
SGV and KWG are pleased to announce that they have made arrangements with
the Canadian Dealing Network (''CDN'') such that they expect their common
shares to trade (without quotation) through the facilities of the CDN
effective Tuesday December 23, 1997 under the symbols SGVE and KWGR. This has
been done in order to provide shareholders a marketplace on which to transact
in their shares until such time as SGV and KWG are able to reestablish trading
on the Toronto Stock Exchange and The Montreal Exchange (as well as NASDAQ for
KWG).
COURT PROTECTION
----------------
On December 18, 1997, SGV and KWG obtained from the Quebec Superior Court
an extension of the stay of proceedings and the stay of existing agreements in
their favour originally granted as part of the order under the Companies'
Creditors Arrangement Act (''CCAA''). This will permit SGV and KWG to
continue to operate under protection of the Court until the meeting of
creditors to be held on or before February 26, 1998.
RESTRUCTURING PLAN
------------------
SGV and KWG continue to develop their respective restructuring plans
under the CCAA, due to be filed with the Court by January 23, 1998. In this
regard, SGV and KWG are negotiating with potential purchasers of assets and
certain major debt holders and they have both completed significant cost
cutting measures which have dramatically reduced overhead expenses.
MANDATE TO PRICE WATERHOUSE
---------------------------
As originally contemplated by the December 5, 1997 press release, SGV has
engaged its auditors, Price Waterhouse, to independently confirm that the
funds related to specific inter-company accounts were used in the operations
of the SGV group of companies. This work has not yet been completed and SGV
has agreed with Price Waterhouse that this work will be performed in
conjunction with the December 31 financial year end audits of each of the
companies affected, thereby resulting in a considerable efficiency and
resultant cost saving. Nevertheless, as part of the work that it has completed
to date related to these intercompany accounts. Price Waterhouse has confirmed
to SGV that nothing has come to their attention to indicate that the funds
were used other than in the operations of the SGV group.
St. GeneviŠve Resources Ltd. and KWG Resources Inc. are mining
exploration companies.
NO REGULATORY AUTHORITY HAS APPROVED NOR DISAPPROVED
THE CONTENT OF THIS PRESS RELEASE
-0- 12/22/97
For further information: Jacques Rossignol, Lapointe Rosenstein, (514) 925-6336, or (310) 474-7044 from Dec. 22, 97 to Jan. 4, 98
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