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MONGOLIA GOLD RESOURCES LTD.
Wednesday, June 30, 1999 For immediate release
Release: Series 3 Release 112
Partner at Bumbat Resolves Debt Issue, New North American Projects Evaluated, Board member resigns
Mongolia Gold Resources Ltd (the "Company") announces that it has been informed that its partner, Mongolyn Alt Corporation ("MAC") has entered into a debt repayment schedule with the Trade and Development Bank in Mongolia to extend over the next 2 years. The issue of this debt (US$2,000,000) which came due on December 25, 1998 has complicated discussions regarding the Bumbat Company Ltd and its 100% owned Bumbat Mine. The Company owns a 49% interest in the Bumbat Company Ltd., with MAC controlling the remaining 51%.
The 300 tpd Bumbat gold mine shut down in January 1998, for routine repairs, and did not restart due to a shortfall in MAC's contributions to the venture. The Company is continuing its efforts to resolve issues surrounding their participation in the Bumbat Company Ltd. MAC had been trying to sell their interest in the Bumbat Company Ltd., but the outstanding loan issue had complicated the situation.
The Company is proceeding to evaluate additional mineral exploration and development opportunities, and is currently focusing discussions on one North American project. It is anticipated that these disscussions may be concluded shortly. The North American project, that is not tied to gold alone, will give the Company a well located domestic project to advance. Details will be made available upon the conclusion of discussions.
The Company also wishes to announce that Mr. George Malby has resigned from the Board of Directors due to personal reasons. The Company wishes to thank him for his contributions to the Board.
On behalf of the Company
“Dr. D.R. Webb” |
