Release......but not much!
August 20, 1999 15:19
Maxam Gold Corporation Announces Status of Maxam Preferred Dividend and Funding Update
EAST PEORIA, Ill.--(BUSINESS WIRE)--Aug. 20, 1999--
DISTRIBUTION OF MAXAM PREFERRED DIVIDEND
As announced on July 15, 1998, the Board of Directors of Maxam Gold Corporation (OTC BB: MXAM) declared a dividend to Maxam shareholders of 1 (one) share Maxam Preferred for each 1 (one) share Maxam Common held as of record date on October 1, 1998. Preparation of the appropriate documents is in process. Distribution of this dividend is anticipated when these matters are completed.
ANNOUNCED FUNDING PROGRESS
Maxam Gold Corporation on May 12, 1999 announced that it was entering into a $30 million funding agreement, with closing and initial draw of $10 million scheduled for July 1, 1999. The funding was secured by the following assets: (a) 6,000,000 Troy ounces gold equivalent open-pit mineable resources on the four Peoria Seven claims; and, (b) a pledge of 50 million common shares of Maxam Gold Corporation. On July 8, 1999, Maxam announced that the funding source had not met the conditions to which it had agreed, and that Maxam agreed to grant a 45-day extension for the source to meet the conditions.
The extension has expired. Talks with the funding source reveal they are confident they can complete their commitment. The entities which pledged the assets and stock remain willing to renew their pledges if this funding materializes. Maxam is also pursuing other potential funding sources and a possible joint venture with a producing mining company.
Safe Harbor Statement
Some statements contained in this and/or other Company correspondence are to be considered "Forward-Looking Statements" as defined under the Private Securities Litigation Reform Act of 1995. The words "believe", "expect", "anticipate", "estimate", and similar expressions are intended to identify forward-looking statements. Such statements are subject to certain risks, uncertainties, and assumptions, including: the likelihood that the Company will continue to incur losses from operations and investments pending development of its mining properties; the uncertainty that the Company will be able to continue as a "going" concern; significant additional capital requirements and, the effects of economic factors, geological factors, operations factors, and governmental regulations on exploration or mining operations. The Company does not undertake to update any of the forward-looking statements that it may make from time to time. Further, there can be no assurance that any forward-looking statements will ultimately prove to be accurate.
CONTACT: Maxam Gold Corporation
Dale Runyon, 309/699-8725
Fax: 309/699-1275
Al Hubbard, 214/999-6066
Fax: 214/999-6721
Web Site: maxamgold.com |
