Big Valley to acquire QR mine from Kinross
Big Valley Resources Inc BV
Shares issued 20,234,310 Aug 12 close $0.31
Fri 13 Aug 99 News Release
Mr. Lloyd Tattersall reports
As previously announced, by agreement dated June 28, 1999, Big Valley
Resources was granted the right to acquire the QR gold mine from Kinross
Gold Corporation for $3-million. By agreement dated July 30, 1999, Big
Valley assigned its right to purchase the QR gold mine to 580085 B.C. Ltd.,
a private British Columbia company controlled by Lloyd Tattersall, the
president of Big Valley.
As a condition of the assignment agreement, Big Valley has been granted an
exclusive option to purchase all of the issued and outstanding shares in
580085 B.C. Ltd. at any time on or before July 30, 2000. If Big Valley
elects to exercise the option, Big Valley will become the sole shareholder
of 580085 B.C. Ltd. and would operate the QR mine through 580085 B.C. Ltd.
as a wholly owned subsidiary. Big Valley will assume all debts and other
financial obligations of 580085 B.C. Ltd. if it elects to exercise the
option. Any exercise of the option by Big Valley will be subject to Alberta
Stock Exchange and Big Valley shareholder approval.
The purpose of assigning the right to purchase the QR mine to 580085 B.C.
Ltd. was to avoid the standard two-month delay associated with obtaining
shareholder approval by public companies. As a private company, 580085 B.C.
Ltd. is able to obtain immediate shareholder approval to proceed with the
closing of any future financing. The delay associated with the public
company shareholder approval process would have delayed any significant
work programs on the QR property by Big Valley until the spring of 2000.
An announcement containing full particulars will be issued upon the
completion of a $3-million (U.S.) financing by 580085 B.C. Ltd.
(c) Copyright 1999 Canjex Publishing Ltd. canada-stockwatch.com
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