World Wide Minerals To Reorganize Into Three Companies
TORONTO, ONTARIO--World Wide Minerals Ltd. (TSE: WWS; CDN: WWSS)
announced today that it proposes to reorganize itself into three
companies:
- World Wide Minerals Ltd.
- Virtual Resources Inc.
- Libra Gold Corporation
World Wide would exchange all of the shares of its existing
wholly-owned subsidiaries, Libra Gold Corporation and Virtual
Resources Inc., for 12% of World Wide's existing outstanding
shares. Each of the three companies would continue as independent
companies, initially with the same shareholders as the existing
World Wide. The reorganization will be by plan of arrangement for
which an initial Order was obtained on June 16th from the Ontario
Superior Court of Justice. Final implementation is subject to
regulatory approvals, shareholder approval at an annual and
special general meeting to be held on July 18th and a final Order
of the Court.
World Wide currently has approximately 83 million common shares
outstanding. There is no intention to effect any consolidation of
the World Wide shares so there will be no requirement for
shareholders to tender World Wide share certificates for exchange.
However, in the arrangement, shareholders will receive one share
of Libra Gold for each 10 shares of World Wide and one share of
Virtual Resources for each 50 shares of World Wide. Therefore,
after the reorganization there will be approximately 83 million
World Wide shares, 8.3 million Libra Gold shares and 1.7 million
Virtual Resources shares outstanding.
World Wide Minerals Ltd.
In March 2000, World Wide exited the uranium business to
concentrate its efforts on recovering its investment made in the
Kazakhstan uranium industry in 1996-1997. To this end, World Wide
would retain its existing subsidiaries related to the uranium
business, Nuclear Fuel Resources Corporation (100%) and World Wide
Resource Finance Inc. (50%) as well as its subsidiaries, World
Wide Kazakhstan Inc. (100%) and KazUran Corporation (95%). The
total cash investment in the Kazakhstan uranium industry, with
accrued interest and legal costs to date, amounts to about US$25
million. In an action pending in the US Federal Court in
Washington, D.C., World Wide and its related subsidiaries are
claiming a total of US$300 million from Kazakhstan, its agent
Kazatomprom and Nukem Inc., a US subsidiary of RWE AG of Germany.
Virtual Resources Inc.
In 1999 World Wide formed a wholly-owned subsidiary, Virtual
Resources, to pursue other avenues of business in an effort to
rebuild shareholder value. Since then, Virtual Resources has been
considering various such businesses including new mining projects,
Internet-related businesses, metals trading and environmental
recycling.
On June 12, 2000, Virtual Resources entered into a letter of
intent with Industrial Ecology Corporation and its subsidiary, EPR
Services Inc., which contemplates the acquisition by Virtual
Resources of a 100% interest in the existing and prospective
business carried on by those companies under the name "Electronic
Product Recovery" , or "EPR", in exchange for a 90% interest in
Virtual Resources. EPR operates a plant in Mississaugua, Ontario
(Toronto area) which collects end-of-life electronic equipment
(such as computers and computer peripherals, telephone equipment
and photocopiers) which has significant precious and base metal
content. The plant completely recycles the equipment into the
constituent payable raw materials, consisting primarily of
precious and base metals, steel and plastic. EPR has plans to
construct additional plants in North America, Europe, Australia
and Asia Pacific. As a condition of the acquisition, Virtual
Resources is required to provide to EPR an acceptable financing
proposal for the build-out of additional EPR plants, working
capital and future equity financing.
Libra Gold Corporation
Libra Gold also currently is a wholly-owned subsidiary of World
Wide dedicated to exploration and development of gold projects,
primarily in China. In December 1997, Libra Gold acquired all of
the gold-related assets then held by World Wide. Including
subsequent acquisitions, Libra Gold's current projects consist of:
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- The Dafang Gold Project (51% Libra Gold) in Hunan Province, China,
with a drill-indicated resource estimated at up to 1.0 million oz. of
gold (indicated and inferred).
- The Dexing Gold Project (60% Libra Gold) in Jiangxi Province, China,
which surrounds the Tongshang open pit copper-gold mine (6.7 million
oz. of gold and 10.0 billion lbs. of copper) and is adjacent to the
Jinshan gold mine (2.0 million oz. of gold).
- The Tongshi Gold Project (55% Libra Gold) in Shandong Province, China,
which is adjacent to two producing gold mines with reserves of over
1.0 million oz. and with assays as high as 3,100 g/t gold.
- The Laizhou Gold Project (60% - 68% Libra Gold) in Shandong Province,
China, which is adjacent to the Cangshang gold mine, a 85,000 oz./year
producer.
- The Easter Gold Project (Libra Gold 100%) in Nevada with a 93,000 oz.
drill-indicated gold resource. In 1998 Libra Gold optioned a 70%
interest to Aur Resources (USA) Inc. for option payments and a US%1.0
million work commitment over five years.
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Libra Gold has held discussions with other gold exploration
companies with interests in China which may lead to a business
combination with Libra Gold after giving effect to the
reorganization. This would result in Libra Gold acquiring
additional prospective gold projects in China, which has been its
long-term objective. Libra Gold also has held discussions with
major gold producers with a view to obtaining senior sponsorship
for its exploration and development activities in China.
World Wide is an international resource company whose metals and
minerals businesses historically have consisted of the ownership
and operation of uranium mines and the marketing of uranium
concentrates, as well as gold exploration. Paul Carroll, Chairman
of World Wide, stated that "as a result of our aborted investment
in the Kazakhstan uranium industry and other unsuccessful
uranium-related activities, the Company has been hampered in its
efforts to develop an active, economically-sound business again.
This reorganization will permit us to continue aggressively with
our recovery efforts from Kazakhstan, while at the same time
achieving the long anticipated spin off of the Libra Gold shares
which will permit that business to grow independently. The
corporate objective of Virtual Resources is to create potential
future value and growth for the shareholders, while at the same
time retaining a metals and minerals focus.
World Wide is currently suspended from trading on the Toronto
Stock Exchange but has trade reporting status on the Canadian
Dealing Network although it does not have a full quotation.
Further information with respect to the assets and operations of
World Wide, Libra Gold and Virtual Resources can be obtained on
the Company's website: www.worldwideminerals.com.
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FOR FURTHER INFORMATION PLEASE CONTACT:
World Wide Minerals Ltd.
Paul A. Carroll
416-369-7217
416-369-6088 (FAX)
Email: wws@worldwideminerals.com |
