February 4, 1999 Provides Update On Pending Transactions
Mark A. Wilson, President and Chief Executive Officer of Goldbelt Resources Ltd. announces that the Company and Regal Petroleum Corporation Limited ("Regal") have extended from January 31, until February 23, 1999, the due diligence period and the execution of the definitive Share Purchase Agreement for the previously announced (December 8, 1998) acquisition of Regal by Goldbelt. Goldbelt has scheduled an Extraordinary General Shareholders Meeting for 10:00 A. M. on February 26, 1999 to approve the effective change of voting control of the Company which will result from the acquisition. Goldbelt's stock remains halted for trading on the Vancouver Exchange until such time as Goldbelt and Regal complete or terminate the intended transaction.
Goldbelt continues to pursue the disposition of its mineral lease interests in Kazakhstan. On January 29, 1999 Goldbelt entered into an option agreement with Dabney Industries ("Dabney") for the sale of Goldbelt's 60% interest in Karagai Gold, a Kazakhstan company which holds the license to the Abyz massive sulphide deposit. Dabney paid US $50,000 for the option. The agreement requires that Dabney invest US $100,000 in exploration for 1999 and then has the right to purchase Goldbelt's interest for US $300,000 by October 31, 1999.
Goldbelt previously entered into an option agreement (announced April 21, 1998) with Dabney for the sale of a controlling interest in Dostyk LLP, the company which holds the exploration licenses to two large exploration areas in Kazakhstan - Mykubinsk and Central Kazakhstan. Dabney has paid the first US $50,000 of a US $100,000 purchase price. The closing of the transaction has been delayed for some time but both companies remain committed to the deal and closing of the transaction is expected in the near future.
Goldbelt previously announced a Heads of Agreement to sell its interest 60% interest in the Abyz deposit and its 50% interest in the Leninogorsk tailings deposit to Steppe Gold Resources (March 19, 1998). The two companies were not able to reach final agreement for the transaction due to a change in business circumstances. Goldbelt remains committed to sell its 50% interest in Kazgold, the Kazakhstan company that owns the license to the Leninogorsk tailings deposit, however, the Company is writing off the remaining $150,000 of investment value in Kazgold as of December 31, 1998.
Signed "Mark A. Wilson" Mark A. Wilson, President and Chief Executive OfficerTEL: (303) 297-9987 Mark A. Wilson, President & CEOFAX: (303) 297-9985 |
