Attention Business/Financial Editors:
Resources St. Genevieve Ltd. - $800,000 financing and sale of non-core assets
St. Genevieve Resources Ltd.
ME/TSE : SGV
CDN : SGVE
MONTREAL, QUEBEC - October 20, 1998 - St. Genevieve Resources Ltd.
(''SGV'') is pleased to announce the closing of $800,000 in financing and the
completion of sale of most of its non-core assets.
Private Placements
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After receiving approval from the Quebec Securities Commission (''QSC'')
on August 7, 1998, SGV closed nearly $800,000 in financing. The financing
consisted of a $0.5 million third party loan as well as a $300,000 private
placement.
Pursuant to this placement, SGV issued 3,000,000 units at $0.10 per unit.
Each unit is comprised of one common share and one common share purchase
warrant. Each purchase warrant is exercisable for a period of 18 months
following its issuance, at a price of $0.115 for the first six months and
$0.13 for the following twelve months.
The proceeds of the combined financings were used to repay all cash
creditors under C-36 and part of SGV's line of credit.
Sale of Non-Core Assets
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Throughout the restructuring process, SGV was able to maintain its key
projects and dispose of its non-core assets, namely Ambrex Mining Corporation
and Icelandic Gold Corporation.
Prospectus/Rights Issue
-----------------------
In accordance with its Plan of Arrangement filed under the Companies'
Creditors Arrangement Act and in keeping with orders of the QSC, SGV has
submitted a draft prospectus to the QSC and a preliminary prospectus to other
provincial securities regulatory bodies for the purpose of qualifying several
issues, including the issuance of shares to creditors in settlement of debt
and the issuance of shares related to the rights offering. These offerings are
subject to regulatory approval.
In the event that a receipt for the final prospectus is issued, SGV will
launch a rights issue with a view to raising adequate funds to further develop
its projects, to reimburse a third party loan and as working capital.
SGV is a mining exploration company currently trading (without quotation)
on the Canadian Dealing Network Inc. (CDN) under the symbol SGVE. SGV has
229,968,536 issued and outstanding common shares (including shares to be
distributed to creditors).
NO REGULATORY AUTHORITY HAS APPROVED OR DISAPPROVED THE CONTENT OF THIS
PRESS RELEASE.
-0- 10/20/1998
For further information: Mary Peschka, (416) 941-8709
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