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Gold/Mining/Energy : St. Jude Resources......V.SJD -- Ignore unavailable to you. Want to Upgrade?

To: Keiko who wrote (2915)	8/9/2000 3:14:30 PM
From: Pete Mimmack	Read Replies (2) \| Respond to of 3065

St. Jude Resources Ltd. is pleased to announce that it has entered into a Memorandum of Understanding with MGB Plastics Inc. ("MGB"), a private American corporation. Pursuant to this agreement, St. Jude has obtained the rights to acquire up to 51% of MGB for a price of US $4 million. The acquisition is structured on a staged basis. In the first phase, St. Jude is entitled to purchase a 20% interest in MGB for US $1.5 million. MGB, using resin derived from recycled polyethylene terephthalate plastic ("PET"), manufactures thermoformed packaging for the fresh produce sector in the western United States. It is a multi-million dollar and rapidly expanding marketplace. PET is one of the most recyclable plastics (e.g. beverage bottles) and is experiencing a phenomenal growth rate in evermore environmentally conscious times. MGB has completed marketing programs, assessed production equipment, certified suppliers and assembled experienced operations, sales and administration teams. Uniquely situated in the market, MGB has identified a large customer base in this growing field. The acquisition is a ground floor opportunity for St. Jude to enter into an exciting new area with the stability of a traditional manufacturing base. The plastics industry is a pillar of the global economy and recycled PET for packaging purposes is one of its fastest developing sectors. St. Jude wishes to advise that this investment does not represent a major shift in the company's focus. Management is optimistic that this acquisition will enhance shareholder value both by diversification and the generation of significant cash flow revenues. The company continues to investigate other opportunities in the resource and non-resource sectors. fin-info.com