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Gold/Mining/Energy : Gran Colombia Resources Inc (TSE.GRM) -- Ignore unavailable to you. Want to Upgrade?

To: kfdkfd who wrote (250)	12/19/1997 2:50:00 PM
From: kfdkfd	Read Replies (2) \| Respond to of 308

Here it IS DECEMBER 19, 1997Bolivar and Gran Colombia Agree to Business Combination TORONTO, ONTARIO--Bolivar Goldfields Ltd. ("Bolivar") and Gran Colombia Resources Inc. ("Gran Colombia") jointly announce that their respective boards have approved in principle a business combination of the two companies, and will be retaining an independent valuer under OSC Policy 9.1 for the purpose of determining an appropriate share exchange ratio. Bolivar is the largest shareholder of Gran Colombia, owning 10,175,000 shares representing approximately 28.6 percent of Gran Colombia's issued and outstanding capital. In order to assist Bolivar in financing its operations pending the shareholders' meetings required to approve the business combination, Gran Colombia has agreed to make available to Bolivar a secured working capital facility of up to Cdn $500,000. The facility is to be secured by a first mortgage over Bolivar's Tomi concession, and will be automatically cancelled upon the completion of the business combination. If the business combination is not approved, the facility will be repaid within one year from the date of first drawdown. Under the terms of the facility, the Cdn $500,000 will be drawn down as needed by Bolivar. Advances made by Gran Colombia will bear interest at a rate equal to US$ LIBOR plus 4 percent from the date of the drawdown until repayment. Because Bolivar and Gran Colombia share some common directors, the business combination and credit facility were reviewed and approved in principle by the independent directors of each of Bolivar and Gran Colombia.