MacDonald Oil vs. Yukon/MFC Bancorp
TORONTO, Sept. 6 /CNW/ - MacDonald Oil Exploration Ltd. ("MacDonald Oil"
or the "Company") announces that it continues to pursue the proceedings
instituted against 32565 Yukon Inc. and MFC Bancorp. (jointly referred to as
"Yukon/MFC") before the Superior Court of the Province of Quebec in order to
obtain an order declaring the takeover bid by Yukon/MFC for the common shares
of Bresea Resources Ltd. ("Bresea"), which was completed on February 5, 2001,
to be null and void, together with a series of other related orders.
A preliminary hearing was held before the Quebec Superior Court on May 7,
2001, pursuant to which an interim Safeguard Order was issued. Terms of the
Safeguard Order included, among others, that, "neither Yukon/MFC may, directly
or indirectly, exercise any voting rights attaching to the Bresea shares
acquired by them without obtaining the approval of the Superior Court of
Quebec". The Honorable Dionysia Zerbisias issued the Safeguard Order as a
result of this application, and Yukon/MFC has appealed that Order. The appeal
is set for November 2001.
In the interim, Yukon/MFC went before the Quebec Superior Court on
August 20, 2001 to ask permission to vote their shares of Bresea in favor of
thirteen resolutions to be presented at the Special Meeting of the Bresea
shareholders held August 23, 2001. The Honorable Jacques Dufresne of the
Quebec Superior Court refused to authorize Yukon/MFC to vote its shares of
Bresea in regard to any resolutions at the Special Meeting of Bresea other
than to vote for the Amended Settlement Agreement to dispose of Bre-X-related
claims against Bresea as submitted to the shareholders.
Management of MacDonald Oil plans to continue to pursue these legal
proceedings against Yukon/MFC vigorously.
MacDonald Oil acquired 1,420,256 common shares of Bresea Resources Ltd.
in February 2001 resulting in the issuance of 7,101,280 MacDonald Oil shares.
As the number of MacDonald Oil shares issued in exchange for those Bresea
shares tendered to MacDonald Oil's offer was less than 100% of the number of
outstanding shares of MacDonald Oil, the transaction was submitted to the CDNX
as an acquisition as opposed to a reverse take-over and will not require
graduation to Tier 2. As such, certain filings previously disclosed as being
required for a reverse take-over are not at this time being submitted
including a title opinion on the Cuban property, a sponsorship report and any
updates to the MacDonald Oil's property reports on the Cuban property that may
have been required. These items may be required in the future depending on the
outcome of certain events with respect to the above matters.
FINANCINGS
To date, $300,000 has been advanced on an interim basis pending
satisfactory documentation and regulatory approval on the previously announced
private placement of convertible debentures to be used for working capital and
to fund the on-going expenses associated with the legal proceedings described
above.
BLOCK 22
The moratorium on Cuba's onshore hydrocarbon exploration license over
Block 22 expired on January 31, 2001. MacDonald Oil and its partners did not
elect to enter into the license's third exploration sub-period and the
resulting drilling program, until such time as the terms of the existing
Production Sharing Agreement are able to be renegotiated and revised. The
Company is striving to have a resolution to this matter before the end of 2001
so that continued exploration activities may resume in this area if
appropriate.
OFFICERS AND DIRECTORS
Mr. Burton V. Pabst has recently retired as a director of MacDonald Oil.
The Company's board has yet to appoint a replacement.
Also, the Company is pleased to announce that Mr. Allan C. Thorne was
recently appointed Treasurer and Chief Financial Officer of the Company.
Canadian Venture Exchange has not reviewed and does not accept
responsibility for the accuracy of this release.
For further information: John P. Sanderson, Q.C., Chairman, Telephone:
(604) 685-8329; Robert D. Cudney, President, Telephone: (416) 628-5901,
Facsimile: (416) 628-5911, e-mail:robc@northfieldcapital.com
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