MACDONALD OIL EXPLORATION LTD. - BRESEA TAKEOVER BID FILED BY
MACDONALD
MacDonald Oil Exploration Ltd. (CDN-MACO) ("MacDonald Oil") today
filed a Takeover Bid Offering to acquire all the outstanding
shares of Bresea Resources Ltd. ("Bresea") in exchange for
preferred shares and warrants of MacDonald Oil.
Each MacDonald Oil preferred share will be redeemable at $0.40,
will bear a cumulative dividend of 4% and will be convertible
into 3 common shares of MacDonald Oil until June 1, 2003. Each
MacDonald Oil warrant ("E-Warrant") will permit its holder,
subject to regulatory approval, to acquire one MacDonald Oil
common share at $0.10 until March 1, 2000 and $0.20 until March
1, 2001.
One MacDonald Oil cumulative redeemable convertible preferred
share and one MacDonald Oil E-Warrant will be offered in exchange
for each common share of Bresea Resources Ltd.. The offer may be
withdrawn if any regulatory prohibition is imposed or if there is
a material adverse change in the affairs of Bresea.
The purpose of the offer is to acquire control of Bresea, settle
the claims against it and then seek the discharge of the Interim
Receiver Manager now in control of its assets. The offer will
provide shareholders of Bresea with liquid instruments
approximately reflecting the residual value of their Bresea
shares. MacDonald Oil intends to merge with Bresea and MacDonald
Mines Exploration Ltd. (ASE-MMP.A) upon discharge of the Interim
Receiver Manager and settlement of the claims against Bresea.
The MacDonald companies have been engaged in exploration for
minerals and hydrocarbons, in the Republic of Cuba, for six
years. A very large oil target there is to be drilled, as well
as some 13 high priority gold targets identified in previous
programs. Cuba's cretaceous-aged island-arc geology is highly
prospective for both large oil and gold deposits.
The Bid will be made to all Bresea shareholders not resident in
British Columbia or the USA. A follow-up Bid will be made to
Bresea shareholders resident in British Columbia and the USA,
upon receipt of regulatory approval.
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For further information:
macmines.com
Frank C. Smeenk
(416) 865-1625
No regulatory authority has approved nor disapproved the content
of this news release. |
