MERGER
NDU RESOURCES LTD. UNITED KENO HILL MINES LIMITED
TORONTO, Dec. 19 /CNW/ - James M. Stephen, President and Chief Executive Officer of NDU Resources Ltd. and Stephen F. Powell, Chairman and Chief Executive Officer of United Keno Hill Mines Limited, announced today that a binding merger agreement has now been executed by the two companies. The merger will be implemented by way of a plan of arrangement by NDU.
Under the terms of the proposed merger, which requires regulatory
approval and the approval of NDU shareholders, United Keno will issue 1.35 common shares of United Keno in exchange for each common share of NDU.
The merger will permit the acceleration of the development of the Marg Deposit and broaden the United Keno resource base and permit both properties the economic synergies of the existing infrastructure at Elsa and the increased levels of throughput which will result if a new, larger mill is constructed at Elsa to serve both properties.
A production licence recently issued to United Keno by the Yukon Territory Water Board to permit the planned recommencement of production has been sent to the Minister of Indian Affairs and Northern Development, Canada for signature. United Keno is now concentrating on securing the financing necessary to complete pre-production rehabilitation and development at, and permit the recommencement of commercial production of silver from, its Elsa Properties.
-0- 12/19/97
For further information: Stephen F. Powell, Chairman and Chief Executive Officer, United Keno Hill Mines Limited, 150 York Street, Suite 1702,
TORONTO ON M5H 3S5, Telephone: (416) 955-9085, Facsimile: (416) 955-9459; James M. Stephen, NDU Resources Ltd., Suite 1016-510 West
Hastings Street, Vancouver, BC V6B 1L8, Telephone: (604) 688-2568, Facsimile: (604) 688-2578 |
