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Gold/Mining/Energy : Gold Price Monitor -- Ignore unavailable to you. Want to Upgrade?

To: IngotWeTrust who wrote (75912)	9/6/2001 12:28:44 PM
From: long-gone	Respond to of 116752

ECHO BAY MINES LTD: FRANCO NEVADA MINING CORP LTD: KINROSS GOLD CORP - Shares; Echo Bay Mines Entered Into Support And Lock-Up Agreements - With Franco-Nevada Mining And Kinross Gold Toronto, Ontario, Sep 06, 2001 (Market News Publishing via COMTEX) -- Echo Bay Mines Ltd. announced that its Board of Directors has approved the unanimous recommendation of the Independent Committee of Directors proposing the issuance of up to approximately 361.5 million common shares, in exchange for $100 million in principal amount of its capital securities plus accrued and unpaid interest. The capital securities were issued in early 1997 and interest may be deferred for ten consecutive semi-annual periods. The Company first elected in March 1998 to defer, which has had the result of building up an interest obligation that must be met in April 2003. At September 30, 2001, the principal plus accrued interest will amount to $159.4 million; on April 1, 2003, excluding the semi-annual interest payment then due, the total would be $183.8 million. The Company has entered into support and lock-up agreements with Franco-Nevada Mining Corporation Limited and Kinross Gold Corporation, which respectively hold approximately 72 percent and 15.8 percent of the capital securities. Each of those companies has agreed to exchange all capital securities owned by it, including any capital securities acquired after this announcement, on the basis of a ratio which would require the Company to issue up to approximately 361.5 million common shares in addition to the approximate 140.6 million presently issued and outstanding, assuming all holders of capital securities elect to exchange. The exchange ratio between the respective aggregate ownership interest of capital security holders and present shareholders is accordingly 72:28. These agreements are conditional upon 1) 90 percent of the remaining capital security holders agreeing, prior to the Company mailing proxy solicitation materials to its shareholders, to exchange on the same terms as Franco-Nevada and Kinross; 2) consent of the Company's syndicated bankers to the transactions, and 3) receipt of any necessary regulatory approvals. The share issuance will be presented to shareholders for their consideration and approval will be recommended. The Company has, on an ongoing basis, considered strategic alternatives available to it and its shareholders. BMO Nesbitt Burns were retained as independent financial advisors to assist in this review. Having considered the advice provided by BMO Nesbitt Burns and all other meaningful alternatives, the Independent Committee and the Board of Directors concluded that the conversion of the capital securities was the best way to preserve and enhance shareholder value. The Company is pleased that Franco-Nevada Mining Corporation Limited and Kinross Gold Corporation have agreed to support the transaction and will urge shareholders to vote in its favour. Management expects to mail proxy materials to shareholders on a timely basis and proceed to secure all required regulatory approvals to allow for the conversion of all, or substantially all, of the capital securities for common shares by the end of 2001. Echo Bay mines gold and silver in North America. The primary markets for its shares are the American and Toronto stock exchanges. CONTACT: TEL: +1-303-714-8838 Lois-Ann Brodrick, VP and Secretary Echo Bay Mines Ltd. MarketbyFax(tm) - To get the NEWS as it happens, call (604) 689-3041. (C) 2001 Market News Publishing Inc.