Queenstake becomes debt free though note conversion
Queenstake Resources Ltd QRL
Shares issued 48,002,294 Feb 1 close $0.19
Fri 1 Feb 2002 News Release
Mr. Chris Davie reports
NOTE CONVERTED-QUEENSTAKE DEBT FREE
Queenstake Resources has agreed with Landon Clay of Boston, Mass., holder
of the company's convertible note, that in exchange for Mr. Clay's
immediate conversion of the entire note, that Queenstake would seek
regulatory approval to adjust the conversion price to 10 cents per share
from 18 cents per share. The Toronto Stock Exchange approved the
modification and Mr. Clay has been issued 9,687,830 common shares and
1,779,864 share purchase warrants. The exercise price and term of each
warrant remains unchanged at 18 cents until Sept. 13, 2002. and 20.7 cents
per warrant until expiry on Sept. 15, 2003. This transaction leaves the
company debt free.
Accrued interest on the convertible note from Aug. 1, 2001, to the deemed
conversion date of Jan. 15, 2002, amounted to $53,283 and the holder has
been issued another 532,830 common shares in satisfaction.
After the above issue Mr. Clay will own 14,949,050 or 25.7 per cent of the
total 58,222,954 issued and outstanding shares of Queenstake. Mr. Clay is
acquiring the shares in Queenstake for investment purposes only and may
increase or decrease his interest in Queenstake as market circumstances
dictate.
Pursuant to a private placement in September, 2000, Mr. Clay owns an
additional 3,550,025 share purchase warrants on the same terms and
conditions as the 1,779,864 share purchase warrants issued with the
conversion of the note discussed above. If Mr. Clay exercised all of his
warrants he would own 29.95 per cent of Queenstake's stock.
The company, through the Magistral joint venture, began construction in
early January, 2002, on its Magistral gold mine in Mexico. The engineering
is complete, staffing is well under way, equipment is being readied for
transport, other equipment is being sourced and improvement to the access
road will commence in the next few days. Construction is on schedule for
completion in six months.
Additional exploration drilling will commence mid-February, 2002, on the La
Prieta area of the Samaniego hill zone. This zone remains open along strike
and in the down dip direction. It is planned to conduct a further 3,000
metres of drilling and a reassessment of the resource and reserve will be
carried out to incorporate the results of this additional drilling. Visit
the company's Web site at www.queenstake.com to see photos and to monitor
its progress as it builds a new gold mine in Mexico.
(c) Copyright 2002 Canjex Publishing Ltd. stockwatch.com |
