Big Valley financing update
Big Valley Resources Inc BV
Shares issued 21,359,310 Oct 29 close $0.28
Mon 1 Nov 99 News Release
Mr. Lloyd Tattersall reports
Big Valley, through the company 580085 B.C. Ltd., has made the Oct. 30,
1999, payment to Kinross Gold Corporation in the amount of $200,000.00 with
regards to the purchase agreement of the QR Gold Mine. Big Valley has the
right to buy the shares of 580085 B.C. Ltd. for the nominal amount of
$10.00. 580085 B.C. Ltd. has borrowed the $200,000.00 from an arm's-length
third party and the loan is repayable on April 30, 2000. Subject to Alberta
Stock Exchange approval, the principle amount of the financing is
convertible to Big Valley shares at 25 cents per share and
10-per-cent-per-annum interest applies.
Contingent with this finance package, 580085 B.C. Ltd. has signed an
agreement with the lender to supply 580085 B.C. Ltd. with a standby letter
of credit in the amount of $3-million on or before Dec. 31, 2000. 580085
B.C. Ltd. has given the lender the exclusive right to contract equipment
and labour at the QR Gold Mine at industry standard rates, subject to the
confirmation of the acquisition of the QR Gold Mine. A final payment of
$3-million is due Kinross on or before April 30, 2000.
580085 B.C. Ltd. is negotiating further financing. When complete, Big
Valley intends to exercise its option to acquire 580085 B.C. Ltd. whereby
580085 B.C. Ltd. would become a wholly owned subsidiary of Big Valley. This
transaction was approved by the shareholders of Big Valley on the Oct. 8,
1999, meeting and is subject to Alberta Stock Exchange approval.
The company wishes to thank the shareholders for their support, as all the
ongoing business resolutions presented by the company, at the Oct. 8, 1999,
meeting, were approved by the shareholders.
(c) Copyright 1999 Canjex Publishing Ltd. canada-stockwatch.com
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