April 21, 1998 - Agrees to Sell Interest in Exploration Properties
Mark A. Wilson Chief Executive Officer of Goldbelt Resources Ltd., announces that
the Company and Dabney Industries Corporation (Dabney), a privately held British
Virgin Island corporation, have reached an agreement for Goldbelt to sell Dabney
a 55% interest from its 80% interest in Dostyk Minerals. Dostyk Minerals is a
Kazakhstani mineral exploration company which holds the exploration licenses
covering the Mykubinsk and Central Kazakhstan license areas where Goldbelt has
actively explored over the past two years.
Upon conclusion of its due diligence, Dabney will acquire its 55% interest by
paying Goldbelt U.S. $100,000 at closing, less option payment made, and by
incurring the next U.S. $2.0 million exploration payments or by maintaining the
licenses through December 2000, whichever comes first.
Once Dabney has earned its interest, Goldbelt will have a 25% interest in Dostyk
Minerals and will be responsible for contributing its share of the on-going
expenditures. If Goldbelt decides not to contribute to the on-going funding,
Goldbelt may choose to accept Dabney's buy-out price of U.S. $900,000 for
Goldbelt's interest or face dilution by giving up a 5% interest per year. If
Goldbelt's interest in Dostyk Minerals declines to 10%, then Goldbelt must accept
Dabney's offer to purchase its remaining interest for U.S. $900,000. If Dabney
does not purchase Goldbelt's interest at that time, Goldbelt will thereafter
retain a 10% ownership with no further obligation to contribute to costs.
Combined with the previously announced (March 19, 1998) agreement to sell certain
Kazakhstan properties to Steppe Gold Resources this sale to Dabney will complete
the anticipated arrangements necessary for Goldbelt to re-focus its future
activities to new opportunities in a different geographic area.
TEL: (303) 297-9987 Mark A. Wilson, CEO FAX: (303) 297-9985 |
