ASHTON ANNOUNCES RIGHTS OFFERING
John S. Auston, President and CEO of Ashton Mining of Canada Inc.
("Ashton"), is pleased to announce that the Board of Directors has approved
the re-financing of the Corporation by way of a Rights Offering to raise up
to $5.9 million of new equity.
Under the Offering each holder of common shares on May 19, 2000 (the "Record
Date") will receive one Right for each common share held. Each four Rights
will entitle the holder to subscribe to either one non flow-through common
share of Ashton at a price of $0.80 or one flow-through common shares of
Ashton at a price of $0.85. The holder may do so at any time until the
expiry of the Rights at 4:00 pm (Vancouver time) on Friday, June 9, 2000
(the "Expiry Time"). Holders of Rights who exercise their Rights in full
are entitled to subscribe for additional common shares (under additional
subscription privileges) on a pro-rata basis.
Ashton Mining Limited ("AML"), the Corporation's 61.6% shareholder, has
agreed, subject to certain conditions, to exercise the Rights issued to it
under the Offering and to subscribe for any remaining common shares not
otherwise subscribed for at the Expiry Time subject to a maximum aggregate
subscription by AML of $5.7 million.
The maximum number of approximately 7.18 million common shares could be
issued under the Offering for maximum proceeds of $5.9 million. The
proceeds will be used to fund Ashton's exploration programs in the Northwest
Territories, Nunavut, Alberta and Quebec, for working capital to fund
general operating expenditures and to pay the expenses of the Offering.
A detailed Rights Offering Circular and Rights Certificates will be mailed
to all shareholders of Ashton as of the Record Date who reside in the
provinces of British Columbia, Alberta, Saskatchewan, Manitoba, Ontario,
Quebec, Nova Scotia and Newfoundland and to AML. Shareholders resident in
any other jurisdiction are deemed to be ineligible to participate in the
offering and will not receive Rights Certificates or be eligible to exercise
Rights. Montreal Trust Company of Canada will attempt to sell their Rights
on the Toronto Stock Exchange and will distribute the net proceeds from
those sales, if any, to the ineligible shareholders on a pro-rata basis.
The Rights Offering is subject to receipt by the Corporation of all
applicable regulatory approvals.
For more information visit our website at www.ashton.ca or contact:
John S. Auston
President & CEO
(604) 983-7750
Ariel Bowers
Investor Relations
investor@ashton.ca |
