Hello everyone on the thread,
Here is WIM's most recent Press Release. Also for the latest information on WIM please see the new feature on our web page called 'Current Slideshow Presentation'. This will be updated each time a new slideshow is prepared. The most recent update was April 28th.
Thank you for your interest. If you have any further questions with regards to this press release please feel free to call myself, Reg Burden, Stan Bharti or George Faught at 416-861-9500.
Brad Humphrey
William Resources Inc.
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NEWS RELEASE
WILLIAM RESOURCES INC.
390 Bay Street, Suite 2008
Toronto, Ontario M5H 2Y2 May 6, 1998
Internet Address williamres.com
E-mail Address: info@williamres.com
Trading Symbol TSE - WIM
CONVERTIBLE DEBENTURE RESTRUCTURING
William Resources Inc. has proposed a restructuring of its $97,750,000 convertible unsecured subordinated debentures due January 23, 2002. The restructuring will:
ú Improve the Company's liquidity;
ú Strengthen its financial position; and
ú Improve the conversion feature of the debentures.
The restructuring, when approved, will release William from its obligation to pay debenture interest for one year (May 20, 1998 and November 20, 1998 payments) and will provide the Company with the option to pay the 1999 interest payments in the amount of $7,820,000 in either cash or stock. Under the proposal, the debenture conversion price will be lowered to $0.80 per share, giving the holders the ability to convert into common shares any time prior to maturity or the day of redemption. At the Company's option it may redeem the debentures on or after June 17, 2000 (formerly November 22, 1999), provided that the current market price is not less than $1.00 per share. The Company also has the option to satisfy payment by issuing common shares on the redemption or the maturity of the debentures. If all of the debentures were to be converted, 122,187,500 common shares of the Company would be issued. The transaction is subject to receipt of all necessary approvals.
The Company has to date received irrevocable consents from 35% of the debentureholders to the proposed restructuring. The irrevocable consents have been received from large institutional holders. For the restructuring to be effective, a meeting of debentureholders will be held not later than July 15, 1998, where a favourable vote on the restructuring is required by not less than 66 2/3% of the principal amount of the debentures represented at the meeting.
"The debenture restructuring is another step in a process initiated last year to ensure the Company's long term survival. Over the last year the Company has restructured its bank debt (November 1997), reduced its G&A and corporate overhead, sold many of its non-core assets for cash and placed the Rustler's Roost mine in Australia on standby. William has also strengthened its management team through the appointment of Wolf Seidler as the Chief Operating Officer at the beginning of this year," said Stan Bharti, President and CEO of William. The Board of William Resources recommends that all debentureholders vote in favour of the restructuring. In forming its recommendation, the Board considered a number of factors including the views of its financial advisors, Nesbitt Burns.
William is a gold mining company listed on The Toronto Stock Exchange (symbol TSE: WIM). Its wholly-owned gold mines include Bj'rkdal in Sweden, Jacobina in Brazil and Pahtavaara in Finland. Bj'rkdal is Europe's largest gold mine. William also provides engineering and contracting services to the international mining industry through the BLM Service Group.
Contact: Stan Bharti, President or George Faught, Senior Vice President, Finance Tel: (416) 861-9500, Fax: (416) 861-8165 |
