Wednesday May 13, 5:35 pm Eastern Time
Company Press Release
Negotiations continuing in attempt to arrange corporate merger
VANCOUVER, British Columbia--(BUSINESS WIRE)--May 13, 1998-- Further to the Company's News Release of April 21, 1998, Cornucopia Resources
Ltd. (TSE:CNP - news; NASDAQ:CNPGF - news) reports that negotiations are continuing in an attempt to arrange a corporate merger with an established gold mining company. In order to structure a workable transaction, it is anticipated that significant concessions will have to be made by all the affected parties including
the Company's bankers, the major creditors and the shareholders.
Parallel negotiations are also taking place with another mining group who have expressed interest in acquiring 100% of Mineral Ridge Resources Inc., the Company's wholly-owned subsidiary which operates the Mineral Ridge gold mine in Esmeralda County, Nevada. This transaction will also require the cooperation
of all parties.
In the event that neither of these proposed transactions can be completed, the Company's bankers have indicated that they will have no alternative to foreclosing on Mineral Ridge's assets and enforcing Cornucopia's guarantee. Cornucopia has pledged all its assets, including its interest in The Ivanhoe Joint Venture, to the bank
in support of the Mineral Ridge loan.
A foreclosure will clearly eliminate any residual value for Cornucopia's shareholders. However, it is hoped that the type of transaction now contemplated could recognize modest value for shareholders' equity.
Contact:
Cornucopia Resources Ltd.
Andrew F. B. Milligan, 604/687-0619
Fax: 604/681-4170 |
