NEWS RELEASE . . . . . . . . . . .
The following news release came out today. It simply demonstrates that ING is doing its best to position itself to take off when the prices of gold and copper eventually recover. (My estimates, for what they are worth: copper, US$1.00 in 2 - 3 years; gold, back to US$320 by the end of the year. Reasons: continuing currency collapses and Y2K.)
However, right now, this is a classic case of being all dressed up with nowhere to go. Two year patience, if one can do it, should reward an investor greatly . . . .
----------------------------------------------------------------------------------------------------------
Wednesday February 3, 3:32 pm Eastern Time
Company Press Release
SOURCE: Indochina Goldfields Ltd.
Indochina Goldfields acquires remaining 20% interest of Bakyrchik gold mine in Kazakhstan
SINGAPORE, Feb. 3 /CNW-PRN/ - R. Edward Flood, President and Robert M. Friedland, Chairman are pleased to announce that Indochina Goldfields Ltd., today closed an agreement with GTL Resources PLC, formerly BKG Resources PLC, to acquire the remaining 20% interest it does not already own in the Bakyrchik gold mine in Kazakhstan.
GTL Resources has agreed to transfer to Indochina its 20% interest in the Bakyrchik gold project. As a result Indochina will own 100% of the Bakyrchik gold mine. As part of the transaction, GTL Resources also agreed to transfer their 85% interest in the exploration joint venture for the Bakyrchik project area and any other interests they may hold in Kazakhstan. As consideration for GTL Resources' interests, Indochina will pay GTL Resources US$500,000 and will release the company from any and all obligations to Indochina with regard to the carried interest loan resulting from expenditures made at the Bakyrchik project by Indochina on behalf of GTL Resources.
With this transaction, the company has simplified the project ownership and management structure and has consolidated the interests of the Bakyrchik mine and the extensive neighboring exploration rights. Indochina plans to proceed with ongoing negotiations aimed at restructuring the terms of a 1997 agreement, in which the company acquired its initial 80% stake in the mine. Central to the discussions is the payment of the final US$30 million portion of the purchase price.
The company believes that the GTL agreement will provide greater flexibility to negotiate additional Bakyrchik-related transactions and will help to create shareholder value. The measured, indicated and inferred resource of the Bakyrchik mine is approximately 13 million ounces of gold. The economics of the Bakyrchik project, which were reviewed in detail in a bankable feasibility study, have been affected by the decline in the gold price, the cost of GTL Resources' carried interest and the remaining acquisition payments due to the Kazakh Government. With the new simplified ownership structure in place, Indochina will continue to advance discussions with potential joint venture partners.
Indochina Goldfields currently has 71.7 million shares outstanding and had a cash balance of approximately US$56 million on December 31, 1998. In addition to the company interest in the Bakyrchik gold mine, Indochina is also producing low cost copper at the S&K Mine at Monywa in Myanmar. The company's other assets include a significant indirect stake in the Emperor Gold Mine in Fiji, which is expected to produce approximately 135,000 ounces of gold in 1999. Indochina also holds extensive gold and base metal exploration interests in Indonesia, Thailand and South Korea. The company's shares trade on the Toronto and Australian stock exchanges under the symbol ING.
SOURCE: Indochina Goldfields Ltd. |
