BLACK SWAN GOLD MINES LTD. ANNOUNCES RE-ORGANISATION
VANCOUVER, July 21 /CNW/ - Black Swan Gold Mines Ltd.
Trading Symbol: TSE - BSW
BERLIN - BSM
FRANKFURT - BSM
The Board of Directors of Black Swan Gold Mines Ltd. (Black Swan)
announces a recent Board and management re-organisation plus plans to change
the focus of the Company's strategy. Under the re-organisation:
- Mr. Edmond A. Lemieux will resign as Chairman of the Board of
Directors. He will remain as a Director of the Company.
- Mr. Arthur T. Fisher will step down as President of the Company.
He will assume the role of Chairman of the Board.
- Mr. Luigi Giglio will step down as Director-General Operations.
He will hold no management responsibility but will remain as a
Director of the Company.
- The position of Vice President - Corporate Development has been
eliminated. Mr. Stephen Fabian will remain as a Director of Black
Swan until the upcoming Annual General Meeting.
- Mr. Bryce M. A. Porter, the current Chief Financial Officer of Black
Swan has assumed the position of President.
- Mr. Augusto Kishida has been appointed to the position of Vice
President - Exploration. He will be responsible for all of the
exploration activities of the Company.
The Board now believes that management is in a position to plan and
implement a new strategy which is focused upon:
1. actively seeking to acquire or establish profitable production or
near production operations that have low costs of production,
relative to industry averages. Such operations need not be in gold;
2. maintaining the Brazilian portfolio of properties for exploration on
a highly selective basis. Joint venture partners will be sought for
the larger and more advanced projects; and
3. an increased emphasis on the exploration and development of Black
Swan's diamond properties.
Previous to this change in strategy, Black Swan commissioned an
independent valuation of its Brazilian mineral property interests and other
assets by Watts, Griffis and McOuat Limited (WGM). WGM is a respected firm of
consulting geologists and engineers which has extensive experience in the
valuation of mineral properties throughout the world.
WGM has concluded that the Fair Market Value (''FMV'') of Black Swan's
Brazilian assets lies within the range of US $25.2 million to US $31.2
million. In addition to gold properties and other assets, the value range
included US $11.0 to US $13.9 million for the diamond properties. This
valuation, as at the valuation date of May 15, 1998, is based on the FMV of
the mineral properties defined as ''the highest price available in an open and
unrestricted market between informed, prudent parties, under no compulsion to
act and acting at arm's length, expressed in terms of money or money's
worth.''
The Board of Directors of Black Swan has determined that Black Swan's
audited consolidated financial statements as at March 31, 1998 will reflect a
write-down of Cdn $10.0 million in the carrying value of the Company's
Brazilian gold properties. The carrying value of the Company's diamond
properties remains unchanged after the write-down. Including all properties,
the book carrying value of the Company's Brazilian mineral properties and
capital assets, as at March 31, 1998, was Cdn. $37.7 million. The Board has
also approved a provision of Cdn. $0.65 million to cover costs involved in
re-organising the Company's management and operations.
In addition to its Brazilian assets, the Company has over Cdn $12 million
of cash and cash equivalent balances and a 19.6% holding in Lysander Gold
Corporation. The book value of its shareholders' equity, as shown by the
March 31 audited consolidated financial statements, is equivalent to $1.04 per
common share.
The new management is developing new plans for the Company. It intends
to carefully review, and take full advantage of, the opportunities offered by
the current property market.
__________________
Bryce M. A. Porter
President
View our Web Site at: www.blackswan.com
THE TORONTO STOCK EXCHANGE HAS NEITHER APPROVED NOR DISAPPROVED THE
CONTENTS OF THIS NEWS RELEASE
%SEDAR: 00003952E
-0- 07/21/98
For further information: Investor Relations (604) 689-2599
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The Swan will fly again!!!
Have a very nice day
Pierre |
