To ALL:
Attention Business Editors:
UNITED KENO HILL MINES LIMITED
TORONTO, May 5 /CNW/ - United Keno Hill Mines Limited is pleased to
announce that it has recently entered into agreements with a major direct and
indirect shareholder of the Corporation for the provision of working capital.
The agreements include a promissory note financing which will provide for
the Corporation's immediate operating requirements and a commitment to
subscribe, as part of the Corporation's current financing activities, for a
private placement of common shares of the Corporation in the approximate
amount of $2,000,000, the proceeds of which will be applied to retire
substantially all of the Corporation's bank indebtedness.
In addition, the Corporation has recently entered into an option
agreement with Barramundi Gold Ltd. of Vancouver in respect of United Keno's
440 claims near Dawson, Yukon. The agreement provides that Barramundi can
acquire the property if, at its election, it completes aggregate exploration
expenditures on the properties of $1,800,000 and, subject to regulatory
approval, issues to United Keno shares of Barramundi (BAM:ASE) of an
approximate value of $3,350,000 over the three and one-half year life of the
option.
The claims covered by the option, although unrelated to the Corporation's
core silver-lead-zinc Elsa Properties, represent a substantial claim block in
this historic gold camp where Barramundi already holds a significant land
position and plans an aggressive exploration program.
The Barramundi option agreement will permit the commencement of detailed
exploration of the gold-bearing potential of the optioned claims while United
Keno continues to focus on securing the production financing and completing
the pre-production development necessary to return the Elsa Properties to
commercial production. United Keno will retain an interest in the potential of
the claims through an equity interest in Barramundi.
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For further information: Stephen F. Powell, Chairman and Chief Executive Officer, United Keno
Hill Mines Limited, 150 York Street, Suite 1702, Toronto, ON, M5H 3S5, Telephone: (416)
955-9085, Facsimile: (416) 955-9459
This press release concerns more than one organization.
To view releases from one of these organizations, please select from below.
UNITED KENO HILL MINES LIMITED
BARRAMUNDI GOLD LTD.
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