Unsolicited buyout offer received
Carmelita Resources Ltd CFH
Shares issued 9,757,174 Mar 23 close $0.35
Wed 25 Mar 98 News Release
Mr Harvey Smith reports
Carmelita Resources has received an unsolicited offer from Sterling
Worldwide. The company is beginning its due diligence on Sterling,
requesting clarifications on several issues and is considering what the
offer will mean for the shareholders of the company.
Sterling's news release dated March 24 1998 states:
Sterling Worldwide has made an unsolicited offer to acquire Carmelita
Resources for US$70,000,000 payable in new class of convertible preferred
stock.
Sterling is offering that each convertible preferred share will be
convertible into 10 shares of common stock and accompanies by 10 warrants
to be exercised at US$1.00. The issue price of the convertible preferred
stock will be US$7.00 per convertible preferred share.
In August 1997 Sterling Worldwide restructured to position itself as a
diverse global company seeking acquisitions in hospitality, travel, resort
real estate development, information technology and natural resources in
timber, oil and gas, and mineral explorations. Sterling has recently
acquired the Fort Thomas Hotel in St Kitts, West Indies and Platinum
Investment, a developer of upscale golf course resort hotels which is in
the advanced pre-planning and development phase of the Sierra Palada
Country Club, Malaga Spain and the five star Platinum Club resort and hotel
to be constructed on Cat Island in the Bahamas. Sterling diversified
investments include timber concessions covering 400,000 acres in Venezuela,
South America and a 25% working interest in 50 oil and gas wells in
Parkersburg, West Virginia, US.
If successful the Carmelita Resources bid would provide Sterling Worldwide
with management expertise in the natural resources industry and immediate
access to the mineral exploration ventures being developed by Carmelita
Resources. Carmelita has several gold exploration properties in Guyana,
South America, with work programs under way. The company's Camjee property
is across from Cambior's Omai mine which is the largest open pit gold mine
in South America.
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