Hi Ross, Here's a correction for their release:
Company Press Release
Zen International Resources corrects...In the news release transmitted
earlier today, for Zen International Resources, the party "Zen China" was
referenced incorrectly in the first paragraph
VANCOUVER, BRITISH COLUMBIA--(BUSINESS WIRE)--Oct. 9, 1997--ZEN INT'L(VSE: ZQP) Zen International
Resources Ltd. (the ''Company'' or ''Zen'' or ''ZQP'') is pleased to advise that an agreement has been reached with Zen
International Resources Limited (BVI), Ever Star Mineral Investments Limited, Rysaffe Trustee Company (C.I.) Limited,
Toscana Securities Inc., Campania Holding Inc. and Tangent International Limited (collectively, the ''Founding Shareholders'')
to favourably amend the terms of the acquisition of the 75 percent of Zen Resources (Belize) Limited (or ''Zen China'') that the
Company does not currently own. This will increase ZQP's interest in Zen China to 100 percent. The vendors of Zen China
have not only agreed to favourably amend the original terms of the September 1996, Agreement but to complete the acquisition
of Zen China by ZQP well ahead of the original schedule.
The Company has agreed to acquire the remaining 75 percent of Zen China shares held by the Founding Shareholders by
issuing to them that number of ZQP shares equivalent to two times the number of Issued and Outstanding ZQP shares on
October 31, 1997. Currently the issued and outstanding shares of ZQP are 10,422,367.
The calculation of the relevant number of ZQP shares to be issued to the Founding Shareholders, include those ZQP shares
that are issued and outstanding on October 31, 1997 together with any shares in the capital of ZQP issuable pursuant to any
incentive stock options, share purchase warrants or other convertible securities to acquire ZQP shares which have been
exercised at any time prior to 4:00 p.m. Vancouver time on October 31, 1997.
The original terms of the September 2, 1996 agreement would have resulted in Zen issuing up to three times the number of fully
diluted issued and outstanding shares, including any shares that would have been issuable pursuant to any existing options and
warrants.
Closing of the acquisition of the remaining Zen China shares will occur on November 7, 1997 at which time ZQP will deliver to
the Founding Shareholders share certificates representing the number of ZQP shares to be issued to the Founding Shareholders
and under this agreement the Founding Shareholders will deliver to ZQP duly executed share transfers and accompanying share
certificates transferring the remaining Zen China shares into the name of Zen International Resources Ltd.
The Company is very pleased to be able to proceed expeditiously with this acquisition as Zen China's main asset is a joint
venture in which it can earn a minimum of a 60 percent interest and up to an 85 percent interest in the very important Zijinshan
or Purple Mountain gold-copper porphyry deposit in Fujian province. This joint venture was one of the first exploration
projects in China to receive all relevant approvals from both the Provincial Planning Committee and the Bureau of Geology and
Mineral Resources (on behalf of the Fujian Government) as well as the Provincial Ministry of Foreign Trade and Economic
Corporation (MOFTEC) in July 1997. A business license from the Administration of Industries and Commerce has also been
granted to the joint venture. This allows the joint venture to proceed with exploration and feasibility studies. These approvals
follow the approval granted in June 1997. No further approvals are required to proceed with the joint venture.
Zen previously released an ore reserve estimate which, was prepared by Exa-Min Resource Industry Consultants, Brisbane
Australia, using the existing Chinese data. The following results were obtained.
IN SITU GEOLOGICAL RESOURCE
GOLD ZONE COPPER ZONE
---------------------------------- -------------------------
CUT-OFF MILLION AVERAGE MILLION CUT-OFF MILLION AVERAGE
GRADE TONNES GRADE OUNCES GRADE TONNES GRADE
(percent) (percent)
------- ------ -------- ----- ------- ----- -------
1.0 GPT 29 1.48 GPT 1.4 1.0 13 1.41
0.8 GPT 44 1.27 GPT 1.8 0.8 27 1.15
0.5 GPT 91 0.94 GPT 2.8 0.5 113 0.74
0.3 GPT 141 0.75 GPT 3.4 0.3 356 0.49
Work has already commenced to test the significant upside potential of this deposit (see News Release Oct. 7, 1997) and
management is very pleased with both this potential to increase grade and tonnage at Zinjinshan and with the improvement in
the investment climate in China. This has led to the decision by Zen to proceed ahead of schedule to acquire the remaining 75
percent of Zen China that it does not currently own.
China's mining industry is now firmly committed to market reform and foreign joint ventures as a method to develop its
extensive mineral resources. Further reforms are anticipated shortly that are expected to continue to enhance the mineral
investment climate in China and the consolidation of the ownership of the Zijinshan copper-gold porphyry puts Zen in the
forefront of this emerging market.
ON BEHALF OF THE BOARD OF DIRECTORS
Ms. Catherine McLeod-Seltzer, Chairman
The Vancouver Stock Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of this news
release.
Contact:
Zen International Resources Ltd.
Ms. Catherine McLeod-Seltzer, 604/ 684-0003
604/ 684-0007 (FAX)
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