Thomas.....in case you are still interested????
Reorganization plan; shares for debt
Aranlee Resources Ltd ARB
Shares issued 18,600,000 Apr 29 close $0.08
Thu 30 Apr 98 News Release
Mr. Stephen Kay reports
The company has negotiated a shares-for-debt settlement with the majority
of its short term creditors as part of a reorganization plan involving a
share consolidation or rollback of existing shares at a ratio of one
post-consolidation share for every seven pre-consolidation shares. In
addition, Aranlee has reached agreement on terms to finalize a previously
withdrawn private placement of US$376,000 (see news in Stockwatch Feb. 16,
1998 and Dec. 5, 1997). An extraordinary general meeting will be held
within the next two months to consider the organization plan. The board of
directors of Aranlee feel that a share consolidation at this time, in these
market conditions, is necessary to assist the company's ability to raise
future equity financing for its exploration activities.
As part of an overall reorganization plan, Aranlee will issue approximately
3.04-million new shares to various creditors at 70 cents per new share (ten
cents per old share) to satisfy debts totalling $1.48-million (U.S.)
(C$2.13-million based on an exchange rate of $1.00 (U.S.) = C$1.436)
incurred principally for Aranlee's exploration activities in Argentina,
Kazakstan and for corporate and investor relations activities. As a result
of this transaction the Dragon Group of Companies, the manager of Aranlee's
exploration and administrative affairs and Aranlee's largest creditor, will
settle its $1.32-million (U.S.) in short term debt for shares and acquire
approximately 2.70-million new shares on a post-consolidation basis. These
shares will represent approximately 43 per cent of Aranlee's outstanding
post-reorganization share capital. The Dragon Group's long term debt of
approximately $500,00 (U.S.), together with a $150,000 (U.S.) long term
loan from Clarion Finanz AG of Switzerland, will remain in place. The
scheduled maturity date for all of the long term debt is March, 2001.
Following the shares-for-debt transaction approximately $207,000 (U.S.)
(C$297,000) will remain as short term liabilities, for which the company
has negotiated favourable payment terms.
With respect to the private placement financing, Aranlee will issue 514,225
new shares at C$1.05 (15 cents pre-consolidation) for the $376,000 (U.S.)
previously advanced to Aranlee through Feb. 1998 as subscription funds by
the Aton Select Fund of Switzerland. There are no warrants attached to this
financing. Related to this transaction, a finder's fee of 150,000 old
shares (21,429 new shares) is payable to an arm's length individual for
assistance in obtaining the financing.
Following the necessary shareholder and regulatory approvals for the
consolidation of Aranlee's existing share capital position and completion
of the shares-for-debt transaction, the private placement financing and the
issuance of the finder's fee, Aranlee will have 6,234,257 new shares on an
issued and oustanding basis and 6,543,543 fully diluted. All of the
transactions remain subject to regulatory approval and, with the exception
of the private placement, to shareholder approval.
In an unrelated matter, the VSE has approved the release to Dolphin
Holdings Ltd. of 375,000 pre-consolidation performance shares of the
company previously held in escrow.
Aranlee remains active in northwestern Argentina with nine precious and
base metal porphyry properties, two of which have been joint ventures: the
El Acay property to Rio Tinto, where 2,000m of drilling is scheduled to
start in May, and the Rumi Cori property to High American Resources, which
is adjacent to the Oesteroche gold-silver porphyry prospect. Also in
Argentina, another joint venture is expected to be announced shortly.
Additional financing will be sought to continue exploration activities in
Argentina and to seek new high-quality precious and base metal
opportunities in Latin America. Aranlee also remains active in the South
Voisey's Bay area through its 25 per cent joint venture holding with NDT
Ventures Ltd. (25 per cent) and Donner Resources Ltd. (50 per cent).
(c) Copyright 1998 Canjex Publishing Ltd. canada-stockwatch.com |
