$$$ NEWS $$$ Cusac to Acquire Profitable Alberta Gas Producer
Financing Arranged
VANCOUVER, British Columbia--(BUSINESS WIRE)--July 23, 2001--Mr. Guilford H. Brett,
President, Cusac Gold Mines Ltd. (TSE:CQC - news; OTCBB:CUSIF - news), reports that
Cusac has signed a letter of intent to acquire 100% of 906459 Alberta Ltd., a private oil and
gas exploration and development company with a portfolio of properties from which it enjoys
net production of 286 Mcfpd of Natural Gas and 7 boepd oil.
The properties also have exploration potential. Under the arrangement, 906459 Alberta Ltd.'s
oil and gas management team will join Cusac's existing team to pursue a strategy to build
energy assets and maintain its strong base of gold and other mineral resource properties as a
diversified natural resource company. Cusac's 100% owned Table Mountain Gold Mine in the
Cassiar district, which has produced 400,000 oz of gold to date, remains under care and
maintenance. The Company controls over 80 square miles of staked property in the area, a
fully permitted mine infrastructure and a 300-ton per day mill. Management believes the
property has potential for additional high-grade gold reserves. The purchase price for 906459
Alberta Ltd. is 15,000,000 shares of Cusac common stock. The acquisition should also allow
Cusac to realize on its significant loss carry forwards accumulated during its thirty-year history
as a mineral exploration and gold production company. In conjunction with the transaction,
Cusac has arranged a private placement of 2,000,000 units at $0.15 per unit consisting of one
common flow-through share and one warrant to purchase an additional non flow-through
common share at &0.25 for a period of one year. The transaction is subject to closing, the
approval of the Toronto Stock Exchange, and shareholder approval.
The principals of 906459 Alberta Ltd. are Mr. James G. Evaskevich, Mr. Don J. Brown, P.
Eng., Mr. Al J. Kroontje, P. Eng and Mr. Robert D. Weir, P. Eng. Mr. Evaskevich, who will
join Cusac's board, has over 25 years of oil and gas industry experience, primarily in the areas
of field operations and facility construction.
Mr. Evaskevich is currently a Director and Operations Manager of Glacier Ridge Resources
Ltd., a private oil and gas company with current production of 500 boepd and an asset value
exceeding $30 million.
Mr. Brown, who will join Cusac's board, is a Petroleum Engineer with over 22 years of oil and
gas industry experience, primarily in reservoir engineering and the evaluation, acquisition and
optimization of oil and gas properties. Mr. Brown co-founded and is a Director of Quarry Oil
& Gas Ltd., a CDNX listed oil and gas company with current production over 900 boepd. |
