STBY
DENVER, Jun 22, 2000 /PRNewswire via COMTEX/ -- Stansbury Holdings Corporation
(OTC Bulletin Board: STBY) announced today that it and Absolut Resources Corp
(CDNX: ALR), a Canadian corporation, have entered into a Definitive Agreement
whereby Stansbury would acquire Sweetwater Garnet, Inc. (an indirect subsidiary
of Absolut) in a stock for stock exchange. The purchase is subject to the
approval of the boards of both Stansbury and Absolut, upon the approval of the
shareholders of Absolut, and upon certain regulatory approvals in Canada.
If the requisite approvals are obtained as anticipated, closing would on or
about August 1st of this year. The Definitive Agreement will allow Stansbury to
begin operation of the Garnet Mine and Mills under contract to Sweetwater
Garnet, Inc., pending closing.
The Definitive Agreement provides that Stansbury will be issuing 12,240,000
shares of its common stock to Absolute Resources in exchange for 100% of the
issued and outstanding shares of Sweetwater Garnet, Inc. In addition, Stansbury
will be retiring $1,000,000 of indebtedness of Sweetwater Garnet, Inc., with
3,000,000 shares of its common stock and a production royalty. Sweetwater Garnet
will be essentially debt free upon closing. The book value of the Sweetwater
garnet mine and mill reflect a capital investment in the garnet project of over
7,000,000 Canadian dollars.
Sweetwater Garnet, Inc., a Nevada corporation qualified to do business in
Montana, is the owner of an 1860 acre lease in Madison County, Montana, upon
which a garnet concentrating mine and mill are located, and also the owner in
fee of a finishing mill located on four acres in Beaverhead County, Montana,
about six miles south of the town of Dillon, Montana, adjacent to Interstate 15
and a rail siding.
The garnet facilities have a capacity of at least 12,000 tons per year of
finished garnet, which in the past has been sold to the abrasives and water
treatment industries. With modest expenditures, the mine and two mills can be
increased to 20,000 tons per year output, which represents 20% of current
worldwide demand. Industrial grade garnet, used in the abrasives industry, and
in water-jet cutting and water treatment facilities, sells generally for $180 to
$225 per ton, depending on size. The facilities of Sweetwater Garnet, Inc.,
produce the full suite of sizes used in industry. The known ore body covers an
extensive area from the surface to an average depth of nine feet, with an
estimated resource able to supply 16 years of ore to the mills at a production
rate of 20,000 tons of finished garnet per year.
This press release contains forward-looking statements within the meaning of the
Private Securities Litigation Reform Act of 1995. The matters covered by such
forward-looking statements are subject to known and unknown risks, uncertainties
and other factors which may cause actual results, performance or achievements of
Stansbury Holdings Corporation to differ materially from those contemplated or
implied by such forward-looking statements.
Stansbury Holdings Corporation is a natural resource holding company, whose
website is www.stansburyholdings.com .
SOURCE Stansbury Holdings Corporation
CONTACT: Aldine J. Coffman, Jr., President, 720-748-1407, or fax,
720-748-1408, or ajcoffman@earthlink.net, or Brian McCarty, I
vestor
Relations, 215-928-9630, or fax, 215-928-0283, or bmccarty@ne
reach.net, both
of Stansbury Holdings Corporation
URL: stansburyholdings.com
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