Pacific Rim to sell Andacollo for $5-million (U.S.)
2004-04-01 09:50 ET - News Release
Also News Release (C-MMC) MCK Mining Corp
Mr. Thomas Shrake reports
PACIFIC RIM SELLS ANDACOLLO MINE IN DEAL VALUED IN EXCESS OF US $5 MILLION
Pacific Rim Mining has finalized a letter of intent to sell its wholly owned subsidiary Compania Minera Dayton (CMD) to MCK Mining Corp. of Vancouver, B.C., subject to due diligence, regulatory approval and completion of a formal final agreement. CMD's primary holding is the Andacollo gold mine in Chile, which was officially shut down in December, 2000, by Pacific Rim's predecessor company Dayton Mining Corp.
Under the terms of the agreement, MCK will make staged payments totalling $5-million (U.S.) plus four million common shares of MCK: $1-million (U.S.) and three million shares upon signing of a final agreement; $1-million (U.S.) plus one million shares on or before Dec. 31, 2004; and $1-million (U.S.) on or before each of Dec. 31, 2005, 2006 and 2007. Due diligence is expected to be completed by May 31, 2004.
"Pacific Rim is very pleased to have monetized its non-core Andacollo holding," states Tom Shrake, chief executive officer. "This sale will provide substantial non-dilutive funds for Pacific Rim to further its strategic objectives, through the continued advancement of its El Dorado gold project in El Salvador, the ongoing exploration of its other gold projects and the acquisition of new high-quality gold properties. We are also excited to have the additional upside potential that will come with our share ownership in MCK."
WARNING: The company relies upon litigation protection for "forward-looking" statements. |
