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Ariel signs letter of intent with Leader Mining
Ariel Resources Ltd AU
Shares issued 16,946,116 May 27 close $0.225
Thu 28 May 98 News Release
Also Leader Mining International Inc (LMN)
Mr. William Bennett reports
Ariel Resources and Leader Mining International have signed a letter of
intent contemplating the acquisition of Ariel by Leader Mining. The final
agreement is subject to shareholder ratification and regulatory approval.
Leader Mining is an exploration company; having the Knife Lake
copper-gold-silver deposit and advanced base metal exploration projects
along the Knife Lake belt of northeastern Saskatchewan and properties in
Voisey's Bay, Labrador.
Ariel shares will be converted into Leader shares at a ratio of 12.42:1.
Leader Mining will provide an initial cash injection of $2.5 million
(U.S.). The objective is to increase the yearly gold production from the
present 13,000 ounces projected for 1998 to 50,000 ounces a year and to
increase mineable gold reserves on the property.
Ariel Resources reports a loss for the second quarter ending March 31, 1998
of $407,450 compared to a loss of $60,496 for the first quarter ended Dec.
31, 1997. The loss for this quarter compares to a loss of $168,857 for the
second quarter of last year. Cash flow from operating activities in this
quarter, before changes in non-cash working capital items was $51,295.
During this quarter, 23,587 short tons of ore (27,079) were milled having
an average grade of 0.17 oz/t gold (0.178) which resulted in production of
3,228 ounces (3,760). Total ounces of gold produced so far this year was
6,335 versus 6,977 ounces for the corresponding period last year.
(c) Copyright 1998 Canjex Publishing Ltd. canada-stockwatch.com
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