FOR: GREYSTAR RESOURCES LTD.
VSE SYMBOL: GSL
AND CHURCHILL RESOURCES LTD.
VSE SYMBOL: CHK
MAY 16, 1997
Greystar and Churchill to Amalgamate
VANCOUVER, BRITISH COLUMBIA--Greystar Resources Ltd. (GSL-VSE) and
Churchill Resources Ltd. (CHK-VSE) announce that they have agreed
to amalgamate. Churchill shareholders will receive 1.3 common
shares of the amalgamated company for each Churchill common share
held. Greystar shareholders will receive one common share of the
amalgamated company for each Greystar common share held. The
amalgamated company will be called "Greystar Resources Ltd." Paul
Conroy and Tanya Gunther, directors of Churchill, together with
the existing five directors of Greystar, will form the Board of
Directors. David B. Rovig will remain as President and A.G.
"Tony" Spat will remain as Vice President of Exploration of the
amalgamated company.
The amalgamation is subject to a number of conditions, including
the continuation of Greystar into British Columbia and the receipt
of all requisite shareholder, court and regulatory approvals. If
the amalgamation does not proceed as a result of certain defined
events, reimbursement of expenses and, in certain circumstances, a
break fee of $2,500,000 will be applicable.
Greystar has agreed to engage Eagle & Partners Inc. to provide
consulting services in connection with the amalgamation and, if
the amalgamation becomes effective, to pay a fee of 150,000 common
shares of the amalgamated company. Also, Churchill has agreed to
engage Jones Gable & Co. Ltd. to provide consulting services in
connection with the amalgamation and, if the amalgamation becomes
effective, to pay a fee of 100,000 common shares of the
amalgamated company.
Greystar and Churchill each hold an undivided 50% interest in the
Angostura Project in Colombia. During 1995, 1996, and through May
15, 1997, a total of 69 core holes totalling 13,090 meters has
been drilled at the Angostura gold-silver deposit. A second drill
is now on site and is expected to start drilling on May 19, 1997.
The amalgamated company will continue to develop the Angostura
property and to evaluate other prospects in Colombia, South
America and Europe. |
