CORP. / United Tri-Star Resources Ltd. Company Announcement
UNITED TRI-STAR RESOURCES LTD.
TSE SYMBOL: UTS
FEBRUARY 13, 1998
TORONTO, ONTARIO--United Tri-Star Resources Ltd. ("UTS") announced
today that it has entered into a binding agreement with Solv-Ex
Corporation, Solv-Ex Canada Limited and Solv-Ex Canada Limited
Partnership (collectively, "Solv-Ex") to acquire from Solv-Ex its
12 percent working interest in certain properties and interests,
principally Alberta oil sands leases and certain technology, on
certain conditions. Solv-Ex is presently involved in a
restructuring under the Companies Creditors Arrangement Act
(Canada) and under Chapter 11 of the Bankruptcy Code in the United
States. As part of the restructuring proceedings, Solv-Ex has
entered into an agreement with Koch Exploration Canada, Ltd.
("Koch") pursuant to which Koch will acquire a 78 percent working
interest in those properties and Solv-Ex will acquire a 12 percent
working interest in the properties. UTS has previously announced
that pursuant to that agreement it would retain a 10 percent
working interest in those properties. UTS and Solv-Ex have now
agreed that UTS will acquire Solv-Ex's 12 percent working
interest, for an aggregate of a 22 percent working interest in
those properties. UTS will also acquire from Solv-Ex certain
participation rights with respect to metal extraction technologies
and hydrocarbon extraction technologies developed by Solv-Ex. The
consideration payable to Solv-Ex will be 5,000,000 common shares
of UTS and a cash payment of Cdn. $4.4 million.
The transaction with Solv-Ex is subject to a number of conditions
including receipt of necessary court approval in the United States
and Canada.
The arrangements between Solv-Ex and Koch require, among other
matters, that Koch, Solv-Ex and United Tri-Star enter into a joint
venture agreement relating to the properties. The joint venture
agreement is presently being negotiated but is expected to include
a right of first refusal among the parties. UTS has agreed to
issue to Koch a warrant entitling Koch to acquire 2,000,000 common
shares of UTS at Cdn. $0.65 per share in consideration of Koch
allowing UTS to enter into the binding agreement with Solv-Ex as
noted above.
Along with its interest in the Athabasca tar sands project, UTS
also maintain a 37 percent interest in International Reef
Resources Ltd, which is actively pursuing development of Coal Oil
Agglomeration projects in the United States. As well, UTS holds a
36 percent interest in Tri-Star Gold Corporation which has one of
the largest mineral property holdings in the Ghanaian gold belts
of West Africa. |
