NEWS RELEASE:
World Wide Forms New Uranium Mining Unit
DENVER, COLORADO--World Wide Minerals Ltd. (TSE: WWS) announced
today that it had formed a new mining and marketing unit for all
of its uranium interests (other than World Wide's interest in
Kazakhstan including its US$300 million lawsuit). In a joint
statement issued today with WM Mining Company LLC of Denver, World
Wide said that it had completed the formation of the new company,
WM Mining International Ltd. (WMMI). The World Wide
uranium-related assets were transferred to WMMI at approximately
their book value of US$6.3 million. The purchase price was
satisfied by the assumption by WMMI of about US$1.3 million of
World Wide's existing debt, issue to World Wide of a US$1.7
million promissory note and 25 percent of the equity of WMMI. WM
Mining Company LLC owns 74 percent of WMMI.
The transaction consolidates the World Wide uranium interests in
the United States and Mongolia, including the "Dornod" uranium
mine, and existing uranium sales agreements. In announcing the
transaction, Paul A. Carroll, CEO of World Wide, said "this
concludes the restructuring of World Wide's uranium interests. It
substantially further de-leverages our balance sheet and frees
World Wide to concentrate on its primary objective - recovery of
our investment in Kazakhstan. Recovery of this investment will
enable World Wide to redirect its activities in the minerals
business or to pursue other business opportunities."
WMMI will be headed by Wallace M. Mays, the former President and
COO of World Wide's uranium operations. Mr. Mays is one of the
most qualified uranium industry executives, with more than 25
years experience in the industry. During his career he has been a
senior executive of Uranium Resources Inc., Power Resources Inc.,
Everest Minerals Inc and other companies in the uranium industry.
Mr. Mays said that "the new company also will permit the Dornod
uranium mine in Mongolia to be financed without any recourse to
World Wide and facilitate the open pit mine production being
restarted. Uranium prices appear to be stabilizing and
substantial improvements have been achieved in the economics of
the Dornod project." Plans continue to be to produce up to 3
million pounds of uranium concentrates annually from the Dornod
mine.
As a result of a June 11, 1999 agreement reached between the
Mongolian and Russian Governments, over US$2.0 million of debts
associated with the Mongolian project have been eliminated.
Commenting on the inter-governmental agreement, Mr. Mays said
"this will allow us to restructure the ownership of the Dornod
project and to monetize trade and employee debt associated with
the new company and the project. I would like personally to thank
all of the individuals and organizations involved in this process
for their patience and personal sacrifices. This allowed
resolution of many problems which had plagued the project over the
last year."
Mr. Mays also said "WMMI intends to continue the previous efforts
of World Wide to develop uranium assets in the United States and
to participate in the consolidation currently underway in the
uranium industry."
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FOR FURTHER INFORMATION PLEASE CONTACT:
World Wide Minerals
Paul A. Carroll
Chairman, President and CEO
(1-416)-369-7217
(1-416)-369-6088 (FAX)
wws@worldwideminerals.com
or
Wm Mining International Ltd.
Wallace M. Mays
Chairman, President and CEO
(1-303)-825-7271
(1-303)-825-7289 (FAX)
Email:wmmi@aol.com |
