We're alive, we're alive, we're alive. And now instead of a lot nothing we have 25% of the great potential of Ivanhoe--way to go Andrew!!!!!
Mineral Rich Mine to Be Purchased by Vista Gold Corp
VANCOUVER, British Columbia--(BUSINESS WIRE)--Sept. 10, 1998-- Cornucopia Resources Ltd. (Cornucopia) is pleased to announce that it has entered into a letter of intent with Vista Gold Corp. (Vista) of Denver, Colorado for the purchase by Vista of all of the shares of Cornucopia's wholly-owned subsidiary Mineral Ridge Resources Inc. (MRRI) which operates the Mineral Ridge Gold Mine in Esmeralda County, Nevada. As consideration, Cornucopia will receive 1,562,500 common shares of Vista valued at US$250,000 and Vista will subscribe to a private placement of 2,777,777 common shares of Cornucopia valued at US$250,000.
The transaction, which is subject to final due diligence and regulatory approval, is contingent upon Vista finalizing agreements with MRRI's major creditors, including Dresdner Kleinwort Benson with respect to the US$13.3 million mine debt financing facility. It is anticipated that the definitive agreement between Cornucopia and Vista will be concluded by October 1, 1998. In the interim Vista will assist in the management of the Mineral Ridge Mine.
The sale of the Mineral Ridge Mine will bring to a close a period of several months during which Cornucopia has been in negotiations with a number of mining companies. During this period, mining operations have been suspended, resulting in severe pressure on Cornucopia's working capital. This new transaction should relieve the Company of extensive liabilities, at the same time providing funds for the continuing administration of Cornucopia's currently carried 25% interest in the Ivanhoe Joint Venture in the Carlin Trend, Nevada.
The directors of Cornucopia are extremely pleased at the prospect that the mineral Ridge Mine will be brought back into production. Vista is a highly successful open pit heap leach mine operator in Nevada which can bring substantial personnel and physical resources to bear on the operation of the mine, thereby revitalizing the economic well-being of the Silver Peak area where the mine is situated.
Subject to all required regulatory approvals, the Company has also agreed to grant incentive options to directors and employees for the purchase of a total of 1,415,000 shares in its capital. The options are exercisable on or before September 10, 2003 at the price of $0.15 per share, being above the closing price of the Company's shares on The Toronto Stock Exchange on September 9, 1998.
Cornucopia will continue to direct its efforts towards the exploration of the Ivanhoe property where recent drilling has extended the high-grade gold system adjacent to the Hollister Mine. The Company will also be seeking to acquire high quality exploration prospects in North America.
ON BEHALF OF THE BOARD OF DIRECTORS
"Andrew F. B. Milligan"
CONTACT:
Andrew F. B. Milligan
President and CEO
Cornucopia Resources Ltd.
Investor Relations: 1-604-687-0619
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