To: +the Chief (267 )
From: +alan holman
Wednesday, Sep 16 1998 8:24PM ET
Reply # of 270
MACDONALD MINES EXPLORATION - BRESEA
RECEIVER OFFERED CUBAN GOLD PLAY
980916 - MACDONALD MINES EXPLORATION
LTD.(MMP.A) - TORONTO, ONTARIO
Contact: Mr. Frank C. Smeenk
(416) 865-1625
MacDonald Mines Exploration Ltd. (ASE-MMP.A)
("MacDonald") has made
an offer to PricewaterhouseCoopers Inc., the Court-appointed
interim receiver-manager of Bresea Resources Ltd. ("Bresea"), to
make a share exchange takeover bid to the shareholders of Bresea.
Under the proposal, following all necessary regulatory and
judicial
approvals, Bresea shareholders would be offered the right to
exchange some part of their shares (in an amount to be approved
by
the Court) for shares of an independently established and
appropriately equivalent value in MacDonald. The Bresea shares
tendered to MacDonald, would then be purchased for cancellation
by
Bresea, leaving the balance of its assets available for subsequent
accretion or distribution to its remaining shares. Such assets
would include the larger part of its $26 million, its Calgary
office building, Indonesian properties, and Bresea's potential
participation in damages being sought through various shareholder
class actions. The proposal includes an option for the
receiver-manager to require MacDonald to make follow-up offers
for
parts of the balance of Bresea shares, upon further Court approval.
The receiver-manager is currently scheduled to appear in Court on
September 25th, 1998.
MacDonald has conducted exploration for gold, exclusively in the
Republic of Cuba, since 1994. Its large concession there has
yielded at least one significant discovery, to date, and some 36
mineralized target areas where funds would be employed in early
extensive drilling and further testing work. Cuban mineral
exploration joint ventures require sample preparation in a
government laboratory under supervision of a Canadian assaying
firm
which then conducts sample analysis at its facilities in Canada.
The company believes Cuba's gold potential to be considerable;
neighbouring Dominican Republic hosts the Pueblo Viejo deposit,
the
western hemisphere's largest gold/copper deposit. MacDonald's
Cuban concession contains cretaceous rocks similar in age to those
hosting the Pueblo Viejo deposit.
Frank C. Smeenk, MacDonald's Chairman, explained, "Bresea has
money
invested with it for gold exploration in a cretaceous island arc;
Cuba is one of the best of such environments. However, Bresea's
shareholders' rights to pursue their business and trade their
shares, has been interrupted for more than 16 months now. Our
proposal will give back to them some of their franchise and its
mandate, without in any way limiting their further legal recourse.
This could be a small but very significant step to a recovery of
the junior exploration market. That the Bresea shareholders might,
in this way, launch such an initiative, would be seen, I think, as
highly appropriate."
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For further information, a news conference will be held at the
offices of MacDonald Mines Exploration Ltd., 350 Bay Street,
11th
floor, Toronto, at 5:00 P.M. Monday, September 21st, 1998
No regulatory authority has approved nor disapproved the content
of
this news release.
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