AUREX AB AND SHIEGA RESOURCES CORPORATION ANNOUNCE LETTER OF INTENT SIGNED
VANCOUVER, BC and STOCKHOLM, SWEDEN - Further to the joint news release of January 20, 1999, Aurex AB ("Aurex") and Shiega Resources Corporation ("Shiega") have entered into an agreement setting out the principal terms of a merger of the two companies. The agreement provides that Shiega will complete a statutory amalgamation under the Business Corporations Act (Yukon) with a newly formed Yukon incorporated wholly owned subsidiary of Aurex, to form a new company which will be a wholly owned subsidiary of Aurex. Under the amalgamation, shareholders of Shiega will receive .6 shares of Aurex for each common share of Shiega held. The amalgamation is conditional on all Shiega convertible securities being cancelled prior to the effective date of the merger.
The merger is subject to a number of conditions, including the approval of the shareholders of both Aurex and Shiega, and to any required regulatory approvals. Following completion of the amalgamation, the Aurex board of directors will be reconstituted to comprise three representatives from the current boards of each company.
Aurex is a Swedish company which holds mineral exploration interests in Scandinavia and operates a gold recovery mill in the Bolgatanga region of North Ghana. The shares of Aurex are traded on the SDI market in Stockholm.
Shiega is a Canadian company holding interests in both Northern and Southern Ghana. The interests in the north, which include a small gold recovery plant, are nearby and complementary to those of Aurex. The interest in the south include a gold project in the Nkroful area which is the subject of an option agreement with Ashanti whereby Ashanti can earn a 65% interest.
The merged companies expect to continue to focus their activities on Ghana. This will allow them to continue to benefit from a growing data base and an expanding operational ability. The emphasis will remain on higher grade ores, which are typical of many deposits in Ghana and where new projects could benefit from access to the Group's two processing plants.
For further information contact:
Tore Hallberg, Managing Director, Aurex AB, tel: +46 31 131190
Donald Nicholson, President, Shiega Resources Corporation, tel: (604) 684-4100
ON BEHALF OF THE BOARD OF DIRECTORS
OF SHIEGA RESOURCE CORPORATION
"Signed"
Donald Nicholson
Director |
