Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Gold/Mining/Energy : Bema(Bgo) and Arizona Star -- Ignore unavailable to you. Want to Upgrade?

To: terryswift who wrote (10180)	9/13/2000 9:56:32 AM
From: BAKE	Read Replies (2) \| Respond to of 10482

*** ECM Shareholders get terrible deal from Bema.*** VANCOUVER, Sept. 13 /CNW/ - Bema Gold Corporation ("Bema" or the "Company") announced today that it has entered into agreements to sell its controlling interest in El Callao Mining Corporation ("El Callao") to Crystallex International Corporation ("Crystallex"). Bema is selling its 45% interest in El Callao, approximately US$14.3 million of debt owed to Bema from El Callao, and a 2% royalty on the cash flow from El Callao's Lo Increible project. Crystallex has also agreed to make a takeover bid for the remaining publicly traded shares of El Callao subject to regulatory approval. The debt owed to Bema and the 2% royalty will be purchased for US$7.6 million and a 1% net smelter return royalty. Crystallex has taken an interim position in Bema's loan to El Callao by purchasing US$3 million of the loan, supported by a security sharing and priorities agreement. Bema will receive US$3 million cash on September 13. The remaining US$4.6 million will paid in two installments of US$2.3 million, six and twelve months after closing, which will be made at Crystallex's option in cash or freely tradeable Crystallex common shares. The 1% net smelter return royalty is payable to Bema from all future gold production after 300,000 ounces of gold have been produced from the Lo Increible property, and when the quarterly average gold price is greater than US$300 per ounce of gold. Bema has entered into a "lock-up" agreement whereby Bema will tender its approximately 20.7 million El Callao shares to a Crystallex takeover bid for all the shares of El Callao based on a share exchange ratio of 15 El Callao shares for each Crystallex common share received. The proposed takeover bid equates to an approximate premium of 115% to the El Callao share price based on the September 12 closing share prices for El Callao and Crystallex. The takeover bid and the closing of the acquisition of the debt and royalty interest are subject to receipt of all applicable regulatory, securities commission and stock exchange approvals and consents. On Behalf of BEMA GOLD CORPORATION "Clive T. Johnson" Chairman, C.E.O., & President