NEWS RELEASE TRANSMITTED BY CANADIAN CORPORATE NEWS
FOR: ASHTON MINING OF CANADA INC.
TSE;ME SYMBOL: ACA
AUGUST 21, 1997
Ashton Announces Rights Offering
VANCOUVER, BRITISH COLUMBIA--John S. Auston, President and CEO of
Ashton Mining of Canada Inc. ('Ashton'), is pleased to announce
that Ashton's Board of Directors has approved the re-financing of
the Company by way of a Rights Offering to raise up to $15.7
million of new equity.
Under the Offering each holder of common shares on September 3,
1997 (the 'Record Date') will receive one Right for each common
share held. Each four Rights will entitle the holder to subscribe
to one common share of Ashton at a price of $3.00 at any time
until the expiry of the Rights at 4:00 pm (Vancouver time) on
September 24, 1997 (the 'Expiry Time'). Holders of Rights who
exercise their Rights in full are entitled to subscribe for
additional common shares under additional subscription privileges
on a pro-rata basis.
Ashton Mining Limited (AML), the Company's 62 percent shareholder,
has agreed, subject to certain conditions, to exercise its Rights
under the Offering and to subscribe for any remaining common
shares not otherwise subscribed for at the Expiry Time subject to
a maximum aggregate subscription by AML of $15 million.
The maximum number of common shares that could be issued under the
Offering is approximately 5.25 million for maximum proceeds of
$15.7 million. The funds will be used to fund Ashton's
exploration programs in 1997 and 1998, for working capital to fund
general operating expenditures and to pay the estimated expenses
of this Offering.
Ashton has engaged the services of Goepel Shields & Partners Inc.
(the 'Manager') to form and manage a soliciting dealer group for
the purpose of soliciting subscriptions for common shares under
the offering.
A detailed Rights Offering Circular and Rights Certificates will
be mailed to all eligible shareholders as of the Record Date.
Shareholders resident in New Brunswick, Prince Edward Island, the
Territories of Canada or the United States are deemed to be
ineligible shareholders and will not receive Rights Certificates
or be eligible to exercise Rights. Montreal Trust Company of
Canada will attempt to sell their Rights on The Toronto Stock
Exchange or the Montreal Exchange and will distribute the net
proceeds from such sale, if any, to ineligible shareholders on a
pro-rata basis.
The Rights Offering is subject to receipt by the Company of all
applicable regulatory approvals.
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