Armada Gold 10 Million oz of Gold & 1 billion lb of Cu ! Message Board

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Gold/Mining/Energy : Armada Gold 10 Million oz of Gold & 1 billion lb of Cu !

AAU 0.380

-5.0%

Sep 29 5:00 PM EST

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To: Scott Wilding who wrote ()	6/15/2000 7:35:00 PM
From: Syncrude	of 552

NEWS June 15: newswire.ca TORONTO, June 15 /CNW/ - Armada Gold Corporation (``Armada'') is pleased to advise shareholders that it has reached agreement in principle with a BVI company Baley Gold Limited in connection with the sale of its interest in its Russian gold project. Baley Gold Limited (``BGL'') has been formed with financial backing which includes a number of Armada's European shareholders and has the operational support of a first class expatriate and Russian engineering team with previous regional expertise. It also includes minority participation from the Chita Region's largest Russian state owned mining concern. Its sole purpose is to fund further development of the project with a view to being taken over by a listed company or being the subject of a new listing in the UK, during the course of the next year. In essence, the transaction will involve the following: 1. BGL will provisionally acquire all of Armada's interest in its Cyprus subsidiaries (which own 95% of the Russian gold project) for the purpose of obtaining control of Armada's interest in the project. 2. The consideration for the sale will be: (a) BGL's immediate assumption of Armada's outstanding debt in Russia and other contractual obligations in Russia; (b) A cash payment of US$25,000 to maintain Armada's working capital; and (c) The funding of a Scheme of Arrangement for Armada whereby shareholders, convertible noteholders and creditors will receive shares in BGL in proportion to their interest in Armada; and The value of the sale to be attributed to Armada shareholders, noteholders and creditors under the Scheme of Arrangement will be US $6.5 million, which will equate to approximately CDN $0.04 per share. A very significant majority of Armada's creditors and noteholders consented to a proposed Scheme of Arrangement last year and it is anticipated that the Scheme will endeavor to adopt the previous approach. Both BGL and Armada are now working together to develop and execute a comprehensive Heads of Agreement, which will be replaced in due course by documentation relating to the Scheme of Arrangement. As the transaction will be subject to the consent of shareholders, noteholders and creditors, Armada will issue more complete details upon completion of the Heads of Agreement. The common shares of Armada Gold are listed on the Toronto Stock Exchange and the Canadian Venture Exchange under the symbol ``AAU'', U.S. S.E.C. Exemption: 12g3- 2(b) 82-3965. ``The Canadian Venture Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of this release.''

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