fin-info.com
TORONTO, ONTARIO--Regal Goldfields Limited announces that the
Supreme Court of Nova Scotia has ruled that the action of the
Minister of Natural Resources of Nova Scotia on February 17, 1998
to restrict until December 31, 1998 all prospecting, exploration,
development or mining with respect to all minerals in the area
known as the Jim Campbell's' Barren was lawful. This restriction
did not include lands within the Barren which are subject to
mineral licences which predated February 3, 1993, which land
represent approximately 25 percent of the area of the Barren.
Regal owns or has optioned mineral licences covering approximately
95 percent of the Barren and the licences affected by the
restriction expire December 4, 1998. Because of the restriction,
Regal will not physically be able to fulfill the necessary work
requirements and these licences will likely expire.
The Court did rule that the October 31, 1997 revocation by the
Minister of Regal?s mineral exploration permit with respect to the
Jim Campbell?s Barren was unlawful. However, the February 17,
1998 restriction supercedes the revocation and the exploration
permit has been reinstated with respect to lands within the Barren
which are subject to the mineral licences which predate February
3, 1993.
Regal had applied to the Court to have both of the actions by the
Minister declared unlawful and is disappointed with the decision.
Regal is currently reviewing its alternatives which include an
appeal of the decision and an action for compensation.
The decision was important to Regal and its shareholders but it is
also important to all other mining and exploration companies
operating in Nova Scotia and anyone considering investing in the
province. Uncertainty with respect to the rights of holders of
mineral licences may cause the deferral of investment decisions.
Regal presently has 11,313,643 common shares and 2,000,000 special
warrants outstanding. The special warrants are exercisable into
2,000,000 common shares and 1,000,000 common share purchase
warrants within six business days after a receipt is issued by the
Ontario Securities Commission for a final prospectus qualifying
such common shares and warrants, or on June 23, 1999, whichever is
earlier. Each common share purchase warrant entitles the holder
to acquire one common share in the capital of Regal at an exercise
price of $0.20 per common share at any time on or before December
23, 1999. Further, a rights offering with an expiry date of April
8, 1998 is currently outstanding under which a maximum of
3,672,160 common shares could be issued at $0.14 per share.
Regal is engaged in exploration for and development of mineral
properties in Canada. It currently has active exploration
programs in northwestern Cape Breton Island, Nova Scotia, and Kidd
Township in Timmins, Ontario.
-30-
FOR FURTHER INFORMATION PLEASE CONTACT:
Regal Goldfields Limited
Richard Brissenden
President
(416) 364-1130
(416) 364-6745 (FAX)
NO REGULATORY AUTHORITIES OR SIMILAR BODIES HAVE APPROVED OR
DISAPPROVED THE INFORMATION CONTAINED HEREIN. |
