ETRUSCAN ARRANGES US$3.5 MILLION FINANCING
January 6, 1999, Dartmouth, Nova Scotia -- Etruscan Resources Inc. (EET.TSE) announced today that it had accepted an offer from RMB Resources Limited, a wholly owned business of Rand Merchant Bank, a leading South African investment bank, to provide US$3.5 million of financing to Etruscan to complete the feasibility study on the Samira Hill Gold Project in Niger, West Africa. RMB Resources Limited is the international specialist provider of merchant and investment banking services to the resource sector in sub-Saharan Africa. RMB's parent company, Rand Merchant Bank, has experienced significant growth since its inception in 1979 and now has offices in Johannesburg, London, Sydney and Melbourne.
Etruscan will issue to RMB seven short-term exchangeable capital units at an issue price of US$500,000 per unit. The units will bear interest at the rate of LIBOR plus 2.5% per annum. The units will be outstanding for a period of 36 months from the issue date, which is anticipated to occur by the end of January 1999. The units may be converted after six months at the option of RMB into common shares of Etruscan. The strike price of any conversion will be determined on or before the closing date based on the fair market value of Etruscan shares at that time. The units will be secured by the assets of Etruscan and its subsidiaries.
The offer is subject to RMB completing corporate due diligence of the Etruscan Group and completion of formal documentation. RMB has already completed technical due diligence. The issuance of the units will be subject to receipt of all necessary regulatory approvals.
Etruscan is directly, and through its subsidiaries, involved in the acquisition, exploration and development of mineral properties in West Africa. The common shares of Etruscan are traded on The Toronto Stock Exchange and The Vancouver Stock Exchange under the symbol "EET".
ON BEHALF OF THE BOARD OF DIRECTORS OF ETRUSCAN RESOURCES INC.
Gerald J. McConnell
Chief Executive Officer
For more information contact:
Gerald J. McConnell, Dartmouth, Nova Scotia (902) 468-9270
Rick Van Nieuwenhuyse, President, Los Gatos, California, USA, (408) 395 1169
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