*****NEWS RELEASE*****
Date: August 31st, 1999
Subject: News - for immediate release
NORA EXPLORATION CONCLUDES A PRIVATE PLACEMENT AGREEMENT AND INCREASES ITS INTEREST IN NAMIBIAN GEMSTONES CONCESSION TO 60%
Montreal, QC - Nora Exploration Inc. (NXI-ME) is pleased to announce that it plans to complete a private placement with five parties totaling 2.05 million Canadian dollars. Four of the subscribers to the placement are associated with Kestrel S.A., a financial services company located in Switzerland. Members of Nora's management will participate in the placement for an amount of $100,000.
The private placement will comprise 8,200,000 units priced at 0.25$ per share. Each unit consists of one share and one half warrant. Each full warrant will entitle the bearer to acquire an additional share at 0,33$, over a period of 18 months.
The funds will be employed as follows:
1) $975,000 to increase Nora's interest in the Namibian Gemstones concession. In terms of the joint-venture agreement with Namibian Gemstones, Nora will issue 1.1 million shares and pay $975,000 to increase its interest from 40% to 60%.
2) $600,000 towards a loan agreement between Nora and Hartor Investments Inc. (Hartor) which is currently in dispute. These funds will be deposited "in trust" with Quebec's Superior Court and will not be transferred to Hartor until the courts so rule or until a settlement is reached between the parties.
3) $475,000 shall be retained by the Corporation as working capital.
The closing of the placement shall be no later than September 20th, 1999. The placement is subject to regulatory approval and may require shareholders' consent with respect to the portion to be subscribed for by the members of Nora's management.
RECENT CORPORATE DEVELOPMENTS
During the week of July 30th, 1999, the Corporation's attorneys submitted Nora's legal defense against Hartor's lawsuit filed in April 1999, which defense includes a counterclaim for damages amounting to 1.7 million Canadian dollars. Nora's attorneys consider that the lawsuit has caused damages to Nora for which it is seeking compensation. Nora's management and legal advisors are of the opinion that the Hartor lawsuit is unfounded and will have no adverse effect on the future development of the Corporation's projects. Furthermore, Mr. Peter Bond, president of Hartor and a Director of Nora's Board of Directors, has tendered his resignation as a Director of Nora effective August 26th, 1999.
The Corporation will maintain its focus on the development of the Namibian Gemstones concession. Management, in conjunction with Nora's technical advisors, is now preparing the next stages of the exploration programme which will include a geophysical survey of targeted areas followed by low cost dredging and bulk sampling.
The Namibian Gemstones concession, the second largest offshore marine diamond concession in southern Africa, comprises a block of 23 continuous deep-water concessions measuring approximately 23000 square kilometers in total extent. The block extends from the Namibian-South African border northward along the outer edge of the continental shelf and on the continental slope. The southern part of Nora's concession adjoins that area of NAMDEB's concessions from which the majority of De Beers Marine Corp.'s diamonds is derived.
Of fundamental importance are the age and origin of the various seabed sediments and the relationship they may have to periods when diamonds were introduced into the area via the Orange River drainage system. It is believed probable that during the Oligocene Age (22-37 million years ago), the sea level was significantly lower than its current level and that the Orange River discharged directly into the area of the Namibian Gemstones concession. Sediments of this age are therefore likely to contain diamonds.
Nora Exploration Inc. is a Canadian based resources company actively involved in the acquisition, exploration and development of major gem diamond properties in Africa. The Corporation's large and prospective concession holdings place it among the significant participants in the marine diamond business. Its shares are traded on the Montreal Stock Exchange under the symbol NXI-ME.
For further information, please contact:
Pierre Léveillé John Stella
President Investor Relations
Telephone: (514)846-2133 Fax: (514)846-1435 |
