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Memorandum of understanding signed for potential merger
Leader Mining International Inc LMN
Shares issued 13,528,485 Aug 7 close $2.00
Tue 11 Aug 98 News Release
Also Armada Gold Corp (AAU)
Mr. Jasi Nikhanj reports
Despite a recent unexplained drop in Leader's share price, management would
like to reassure its shareholders the underlying value in the company
remains strong.
A memorandum of understanding has been signed with Armada Gold Corp.
regarding a potential merger. Under the terms of MOU, both companies have
60 days from Aug. 6, 1998 to complete their respective due diligence.
Armada's mining projects include the following assets:
1. Baley gold project, Chita region of Russia:
Estimated potential resource: 4.0 to 6.7 million ounces Au (2.0 g/t to 0.30
g/t Au cut-off)
Open pit mineable reserves: 3.1 mt at 7.1 gpt Au
Planned annual gold productions: 95-100,000 oz/yr
Cash cost of productions: $144/oz (U.S.)
(data obtained from Armada Gold Corp.'s prospectus dated July 15, 1998)
Bankable production feasibility study is being completed by Kvaerner Metals
Davy Ltd. of Toronto, Canada. The study is scheduled from completion by
Aug. 17, 1998.
The $30-million (U.S.) project capital cost is to be financed by a
combination of debt and equity financing. Levesque Beaubien Geoffrion Inc.
is acting as financial adviser to Leader Mining to provide services and
assist the company in analyzing, negotiating and effecting the proposed
merger transaction. Project financing is anticipated to be raised through
syndication of financial institutions.
2. Erdmin J.V., Erdenet, Mongolia
Estimated potential resource: 205 million tonnes at 0.20 per cent Cu, plus
other surface waste dumps.
Technology: SX-EW extraction, currently 10 tpd pilot plant operating
Ownership: 49 per cent Armada Copper, 51 per cent Erdenet Co.
(data obtained from Armada Gold Corp.'s prospectus dated July 15, 1998)
Marubeni Corp. of Japan is financing the phase 1 expansion feasibility
study which is scheduled for completion by year end.
Ariel Resources Ltd. - merger update:
Leader Mining has completed its due diligence of Ariel Resources' mining
projects. Final agreement is subject to certain conditions being finalized
between the parties.
Knife Lake Project - Update
1. Startup open pit design at the Knife Lake deposit is near completion.
2. Exploration over the silver discovery south of the Knife Lake deposit is
continuing.
3. Base metal exploration along the Knife Lake copper belt is continuing,
with a new copper mineralized outcrop discovery, east of Scimitar Lake.
Surface grub samples show values of 0.56 per cent Cu and 150 ppb Au.
4. Geological reconnaissance and sampling is under way at its nearby
Gilbert Lake and Blob West prospects.
Leader Mining is continuing to capitalize on the current soft metal and
equity markets by acquiring high quality mining assets which positions the
company to capitalize on the upturn in metal prices.
(c) Copyright 1998 Canjex Publishing Ltd. canada-stockwatch.com
regards
gmweber |
