9/17/99 - VALERIE GOLD RESOURCES LTD - VSE Approves Acquisition of Gold-Copper Project, Ecuador
<Picture>
Vancouver, BC, Sep. 17, 1999 (Market News Publishing via COMTEX) -- Frank A. Lang, P.Eng., President of Valerie Gold Resources Ltd., announces that the Vancouver Stock Exchange has accepted for filing an option agreement dated August 14, 1999 whereby Valerie Gold Resources Ltd. ("Valerie") may acquire from the vendors, TVX Normandy Americas ("TVXNA"), a 50% interest in the Santa Barbara gold-copper property, located in the Province of Zamora Chinchipe, Ecuador. Under the terms of the agreement consideration is comprised of:
i) Payment of US$100,000 by Valerie to TVXNA upon receipt of acceptance for filing of the agreement, by the Vancouver Stock Exchange;
ii) Issuance by Valerie to TVXNA of 3,000,000 share purchase warrants, conveying the following rights to TVXNA, as long as the agreement remains in effect:
a) purchase of 750,000 common shares in the capital stock of
Valerie, at a price of $2.00 until the first anniversary of the signing of the agreement;
b) purchase of 1,000,000 common shares in the capital stock of
Valerie, at a price of $3.50 until the second anniversary of the signing of the agreement;
c) purchase of 1,250,000 common shares in the capital stock of
Valerie, at a price of $5.00 until the third anniversary of the signing of the agreement;
iii) Valerie must complete a minimum US$500,000 work program on the property before June 13, 2000 and to earn its" interest:
a) Valerie will complete an additional US$1,500,000 in
exploration expenditures before the second anniversary of VSE acceptance of the agreement; i.e. September 13, 2001 and;
b) Valerie will complete an additional US$2,000,000 in
exploration expenditures before the third anniversary of VSE acceptance of the agreement; i.e. September 13, 2002.
All shares acquired by TVXNA on exercising the warrants will be subject to a voting trust by which the voting rights attached to the shares may be voted by the Board of Directors of Valeric in their discretion for as long as TVXNA owns the securities up to a period of 3 years from the date the warrants are exercised. Upon, but not before, the second anniversary date of the agreement TVXNA has the option of selling its shares acquired by exercising the warrants. In the event of a successful take-over bid for Valerie, either friendly or hostile, the non-expired and un-exercised warrants held by TVXNA will be exercisable at their respective exercise price, and the trust encumbering the warrants and/or the shares issued as a result of the exercise of the warrants will be immediately released. Notwithstanding the foregoing all shares acquired by TVXNA on exercising the warrants will be subject to a statutory hold period of 12 months from September 13, 1999, being the date of the approval of the agreement by the Vancouver Stock Exchange.
Drill contracts are currently being put in place and drilling is expected to commence on the Santa Barbara gold-copper zone by the first week in October.
-0-
TEL: (604) 687-4622 Investor Relations of the Lang Mining Group
TEL: (604) 687-4622 Investor Relations of the Lang Mining Grou
FAX: (604) 687-4212
TEL: 1-888-267-1400
E-mail: investor@langmining.com
Internet: www.langmining.com
_____________________________
(c) Corporate Dissemination Services Inc. All rights reserved.
Tel:(604) 689-1101 Fax:(604) 689-1106
RapidFAX (tm) - To get the NEWS as it happens, call (604) 689-3041. |
