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Gold/Mining/Energy : Avenor (avr-tse) - Repap buyout (rpp-tse) -- Ignore unavailable to you. Want to Upgrade?

To: FundAce who wrote (282)	10/28/1997 3:22:00 PM
From: PeterB	Read Replies (1) \| Respond to of 290

More debt reduction ... news release - Alcell to be sold. From Canada Newswire today ... REPAP ENTERPRISES INC. SIGNS LETTER OF INTENT TO SELL ALCELL TECHNOLOGY MONTREAL, Oct. 28 /CNW/ - Repap Enterprises Inc. today announced that the company has signed a letter of intent with Malaspina Capital Limited to sell its proprietary ALCELL(R) pulping technology. The $4 million sale price includes a cash payment of $2 million and the issuance of a $2 million debenture carrying an annual interest rate of seven percent, maturing two years from completion of the sale. The debenture is also convertible at any time prior to maturity into 1.6 million Malaspina common shares at $1.25 per share. The sale is expected to close before February 14, 1998. Pursuant to the terms of the letter of intent, Repap will sell the shares of Alcell Technologies Inc. to Malaspina and Malaspina will assume the liability for $32.5 million non-repayable and $24.5 million repayable Canadian government contribution agreements. The sale will exclude Alcell Forest Products Inc., the subsidiary of Alcell Technologies Inc. which owns a pulping facility in Atholville, New Brunswick. A definitive agreement must be concluded by December 15, 1997, at which time the transaction is subject to the approval of Repap's board of directors, Malaspina's shareholders and necessary regulatory authorities. Malaspina Capital Ltd. is a junior capital pool company listed on the Alberta Stock Exchange. Repap Enterprises Inc. is a major producer of coated groundwood paper with nine percent of North American capacity. The Company's world-class coated paper complex in New Brunswick has two modern coated paper machines with a design capacity of 492,000 tons and a northern bleached softwood kraft pulp mill with an annual capacity of 235,000 metric tons, as well as an integrated groundwood pulp mill.