Attention Business/Financial Editors:
CREDITORS OF ST. GENEVIEVE AND KWG ACCEPT PLANS OF ARRANGEMENT
MONTREAL, April 30 /CNW/ - St. GeneviŠve Resources Ltd.
(''St-GeneviŠve'') and KWG Resources Inc. (''KWG'') (collectively, the
''Companies'') announced today that their creditors have voted, at the
creditors' meetings held this morning, in favour of their respective plans of
arrangement filed under the ''Companies' Creditors Arrangement Act.'' In the
case of St. GeneviŠve, nine classes of creditors voted unanimously and one
class voted with a 98% majority. In the case of KWG, seven classes of
creditors voted unanimously and one class voted with a 99% majority.
The plans of arrangement have as their main objective the sharpening of
the Companies' focus on key projects and the generating of sufficient funds to
continue operations. Also, they provide for the issuance of treasury shares by
the Companies in repayment of certain debts owing by each; however, the shares
to be so issued may only be issued in trust to the Monitor appointed under
their respective plans of arrangement who may in turn only release such shares
to the creditors upon the clearance by each of St-GeneviŠve and KWG,
respectively, with the Quebec Securities Commission of a prospectus qualifying
their issuance.
The Companies are now largely debt free and, subject to regulatory
approval, will launch rights issues pursuant to which each company shall issue
to its respective shareholders rights to subscribe to additional shares in its
capital stock. Negotiations with various parties are underway with a view to
backstopping all or part of these rights issues.
The rights issues, should they be fully subscribed, will generate gross
proceeds to the Companies of approximately $20 million, i.e. $8 million for
St. GeneviŠve and $14 million for KWG. These funds will be used to develop the
Companies' projects, to settle current indebtedness and for working capital.
The shareholders' meetings of the Companies and the special shareholders'
meeting of Emerging Africa Gold (EAG) Inc. which were adjourned on April 14,
1998, will be reconvened at 10:00 a.m. on May 13, 1998, at 630 Ren‚-L‚vesque
Blvd. West, 16th Floor, Montreal, Quebec, Canada, H3B 1S6, in order that they
may be formally terminated.
St. GeneviŠve and KWG are mining exploration companies currently trading
(without quotation) on CDN under the symbols SGVE and KWGR. St. GeneviŠve and
KWG have respectively 86,086,233 and 36,036,070 issued and outstanding shares.
NO REGULATORY AUTHORITY HAS APPROVED NOR DISAPPROVED
THE CONTENT OF THIS PRESS RELEASE
-0- 04/30/98
For further information: Mary Peschka, St. GeneviŠve Resources Ltd., (416) 941-8709 or Jacques Rossignol, Lapointe Rosenstein, (514) 925-6336
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