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Gold/Mining/Energy : Canadian-under $3.00 Stock-Picking Challenge -- Ignore unavailable to you. Want to Upgrade?

To: marcos who wrote (4116)	10/12/2001 12:26:03 PM
From: Al Collard	Read Replies (1) \| Respond to of 11802

marcos, news looks good on your pick GEO-t: Geomaque Announces Significant Progress on Financial Restructuring TSE Symbol: GEO (Amounts quoted in US dollars) TORONTO, Oct. 12 /CNW/ - Geomaque Explorations Ltd. (the "Company") is pleased to announce that it has made an arrangement with its principal lender, Resource Capital Fund II L.P. ("RCF") and certain creditors whereby a total of $2,922,000 of debt owing to these creditors has been eliminated by the payment to these creditors of $825,000 and the provision of certain other consideration. The Company obtained the $825,000 as a result of the exercise by these creditors of the outstanding Warrant B, originally issued to RCF in connection with its financing of the Company. As part of the arrangement, RCF transferred Warrant B to these creditors. The exercise of the warrant resulted in the issuance to these creditors of a total of 17,471,556 common shares. - Butler Machinery Co. ("Butler") provided construction equipment to Geomaque de Mexico S.A. de C.V. ("Geomaque Mexico") for use at Geomaque Mexico's San Francisco Mine in Mexico. As full settlement for outstanding amounts invoiced by Butler totalling $2,297,000, Butler has agreed to take payment of US$500,000 plus the proceeds in excess of $500,000 from the sale of certain equipment at the San Francisco Mine. Butler was also given contingent rights, first, to any royalty that may arise on the sale of the equipment and, second, a 1% NSR on any future gold production from the unmined resources in the main pit. No present value has been ascribed to these rights. Butler paid $500,000 on the exercise of part of Warrant B and received, pursuant to the terms of the warrant, 10,597,943 common shares of the Company. As a result, Butler currently owns approximately 14% of the 75,960,637 common shares now outstanding. Butler may increase or decrease its interest in the Company as market circumstances dictate. - Sococo de Costa Rica, S.A. ("Sococo") provides contract mining services to Geomaque de Honduras, S.A. d C.V. ("Geomaque Honduras") at Geomaque Honduras' Vueltas del Rio mine in Honduras. Geomaque Honduras currently owes Sococo approximately $2,000,000. As settlement of $600,000 of this amount, Sococo has agreed to take payment of $300,000 and, the Company has agreed on an arrangement for the payment of the remaining amounts owing over a period of time. Sococo paid $300,000 on the exercise of part of Warrant B and received, pursuant to the terms of the warrant, 6,344,874 common shares. - Haywood Securities Inc. ("Haywood") is the Company's financial advisor and is providing advice to the Company in respect of its financial restructuring. The Company has agreed to apply the $25,000 received from Haywood on the exercise of a part of Warrant B to reduce fees owing to Haywood by that amount. Haywood received 528,739 common shares pursuant to the terms of the warrant.