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Gold/Mining/Energy : Cambior Mining Inc. -- Ignore unavailable to you. Want to Upgrade?

To: charred who wrote (4)	10/28/1999 6:50:00 AM
From: maxed	Read Replies (1) \| Respond to of 45

Cambior Signs Standstill Agreement MONTREAL, QUEBEC--Cambior Inc. ("Cambior") announces that it has entered into a Standstill Agreement with its hedging counterparties and lenders (collectively, the "Financial Parties") regarding its obligations under agreements with such Financial Parties. Under the Standstill Agreement, the Financial Parties have agreed to defer Cambior gold delivery obligations under all hedging contracts maturing during the standstill period (subject to exceptions to permit Cambior to deliver gold production against specified contracts) and to waive compliance with certain related provisions of Cambior's loan facility agreement. The Standstill Agreement remains in effect until November 26, 1999, subject to earlier termination under certain conditions. In particular, the Standstill Agreement becomes subject to termination if Cambior fails to fulfill its obligations thereunder and may likewise be terminated by any non-defaulting Financial Party if any other Financial Party fails to perform its obligations thereunder. The Standstill Agreement also requires that Cambior present a proposal for the orderly fulfillment of its obligations to the Financial Parties over time (a "Definitive Plan") and secure a recommendation of approval for its Definitive Plan from a majority of a five-member working committee of Financial Parties by November 12, 1999, failing which the Standstill Agreement would also terminate. Cambior's obligations under the Standstill Agreement include the obligation to grant a security interest in its Doyon Mine and related assets to secure the performance of its obligations to the Financial Parties; a commitment to provide security interests over additional assets in consideration for the approval of a Definitive Plan; a commitment to convert LIBOR borrowings under its loan facility agreement into U.S. Base Rate borrowings (resulting in higher interest payments for Cambior) and to renegotiate certain hedging-related provisions of the loan facility agreement; the obligation to submit to independent technical, financial and environmental reviews; a commitment not to incur additional indebtedness during the Standstill Period without the consent of the Financial Parties; a commitment not to pay dividends; a commitment not to sell material assets during the Standstill Period; a commitment not to modify its gold hedging position subject to such agreed measures as may be implemented to improve Cambior's aggregate position under its hedging contracts; and an obligation to pay standstill fees and related expenses to the Financial Parties and to provide waivers, releases and indemnities to the Financial Parties in connection with the occurrence of certain events. While Cambior believes that an agreement regarding a Definitive Plan can be achieved by all parties concerned during the term of the Standstill Agreement, there can be no assurance that such an agreement will be reached. The failure to achieve such agreement, or the early termination of the Standstill Agreement for any other reason, would be likely to have a material adverse effect on Cambior and its financial results, financial condition and prospects. Subject to the provisions of the Standstill Agreement, Cambior will also consider immediately all possible courses of action with a view to maximizing shareholder value, which action may include injections of additional equity or subordinated loan capital, asset sales, the accelerated development of priority projects, business combinations, corporate transactions and other alternatives. Cambior Inc. is an international diversified gold producer with operations, development projects and exploration activities throughout the Americas. Cambior's shares trade on the Toronto, Montreal and American (AMEX) stock exchanges under the symbol "CBJ". This press release contains certain "forward-looking statements", as defined in the United States Private Securities Litigation Reform Act of 1995, that involve a number of risks and uncertainties. There can be no assurance that such statements will prove to be accurate and actual results and future events could differ materially from those anticipated in such statements. Such risks and uncertainties are disclosed under the heading "Risk Factors" in Cambior's Annual Information Form (AIF) filed with the Ontario Securities Commission, the Quebec Securities Commission, the United States Securities and Exchange Commission (Form 40-F) and other regulatory authorities.