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Gold/Mining/Energy : MILL CITY MIY-V -- Ignore unavailable to you. Want to Upgrade?

To: eyewatch who wrote (329)	3/31/1998 9:59:00 AM
From: maxed	Read Replies (1) \| Respond to of 707

Canadian Corporate News.) register to receive future releases by email from CCN Mill City International - Alberta Aerospace Dispute Resolved and Pending Sales Announced CALGARY, ALBERTA--MILL CITY INTERNATIONAL INC. (MIY-VSE; MCYGF-OTC) ("Mill City") is pleased to announce that Alberta Aerospace Corporation ("Alberta Aerospace") has completed negotiations with the Trustees of the now bankrupt Promavia S.A. in Belgium. As previously announced on December 3 and 5, 1997, Mill City and Alberta Aerospace had mutually agreed to suspend its announced funding agreement as a result of litigation commenced by Promavia S.A. and Andre Delhamende against Alberta Aerospace and various of its subsidiary companies and directors. As part of the negotiations with the Trustees in Bankruptcy, the Trustees have agreed to discontinue and terminate the litigation commenced by Promavia S.A. Concerning the litigation by Andre Delhamende, Alberta Aerospace has filed a Statement of Defence and will aggressively defend this action which its legal counsel has concluded is without merit. In light of these recent events, Alberta Aerospace and Mill City have agreed to amend the terms and conditions of their convertible debenture whereby Mill City has agreed to advance $5 million Cdn. to Alberta Aerospace towards completion of FAA certification of its 2-place trainer jet airplane, now anticipated to be completed by the end of 1998 at a projected cost of Cdn. $7.5 million. Since early December, 1997 Alberta Aerospace has continued with its certification efforts notwithstanding the uncertainty created as a result of the litigation. Pursuant to the terms and conditions of the Convertible Debenture, Mill City's obligation is to initially provide $2 million Cdn. within the next approximate 60 days and the further $3 million Cdn. 60 days thereafter. Upon funding the $5 million Cdn., Mill City is entitled to convert its loan into shares representing a majority of the issued and outstanding Alberta Aerospace Shares. Additional funding over and above Mill City's commitment will be secured directly by Alberta Aerospace. The transaction between Mill City and Alberta Aerospace is subject to approval by all applicable securities regulatory bodies. Alberta Aerospace has informed Mill City that it has entered into a letter of intent dated March 19, 1998 with Earth Search Sciences Ltd. ("ESSI") of McCall, Idaho for the purchase of 3 Phoenix Fanjet aircraft in the 4-place configuration over a period of 3 years, the first delivery projected in the fourth quarter of 1999. The value of this pending sale without modifications that may be required by ESSI is US$5,625,000 (Canadian $8,325,000). Alberta Aerospace is confident that this will be the first of numerous sales based upon the extreme interest being shown by prospective customers for both the 2-place and 4-place airplane. Mill City will continue with the exploration of its recently acquired mining property in Mexico, and believes that diversification into the aerospace business will be of benefit to all shareholders. -30- FOR FURTHER INFORMATION PLEASE CONTACT: Mill City International Inc. Larry D. Revitt President (403) 640-0110 (403) 640-4024 (FAX) millcity@cadvision.com millcitygold.com or Alberta Aerospace Corporation Raymond Johnson President (403) 250-3321 (403) 250-3851 (FAX) The Vancouver Stock Exchange has neither approved nor disapproved the information contained herein.Canadian Corporate News.) register to receive future releases by email from CCN Mill City International - Alberta Aerospace Dispute Resolved and Pending Sales Announced CALGARY, ALBERTA--MILL CITY INTERNATIONAL INC. (MIY-VSE; MCYGF-OTC) ("Mill City") is pleased to announce that Alberta Aerospace Corporation ("Alberta Aerospace") has completed negotiations with the Trustees of the now bankrupt Promavia S.A. in Belgium. As previously announced on December 3 and 5, 1997, Mill City and Alberta Aerospace had mutually agreed to suspend its announced funding agreement as a result of litigation commenced by Promavia S.A. and Andre Delhamende against Alberta Aerospace and various of its subsidiary companies and directors. As part of the negotiations with the Trustees in Bankruptcy, the Trustees have agreed to discontinue and terminate the litigation commenced by Promavia S.A. Concerning the litigation by Andre Delhamende, Alberta Aerospace has filed a Statement of Defence and will aggressively defend this action which its legal counsel has concluded is without merit. In light of these recent events, Alberta Aerospace and Mill City have agreed to amend the terms and conditions of their convertible debenture whereby Mill City has agreed to advance $5 million Cdn. to Alberta Aerospace towards completion of FAA certification of its 2-place trainer jet airplane, now anticipated to be completed by the end of 1998 at a projected cost of Cdn. $7.5 million. Since early December, 1997 Alberta Aerospace has continued with its certification efforts notwithstanding the uncertainty created as a result of the litigation. Pursuant to the terms and conditions of the Convertible Debenture, Mill City's obligation is to initially provide $2 million Cdn. within the next approximate 60 days and the further $3 million Cdn. 60 days thereafter. Upon funding the $5 million Cdn., Mill City is entitled to convert its loan into shares representing a majority of the issued and outstanding Alberta Aerospace Shares. Additional funding over and above Mill City's commitment will be secured directly by Alberta Aerospace. The transaction between Mill City and Alberta Aerospace is subject to approval by all applicable securities regulatory bodies. Alberta Aerospace has informed Mill City that it has entered into a letter of intent dated March 19, 1998 with Earth Search Sciences Ltd. ("ESSI") of McCall, Idaho for the purchase of 3 Phoenix Fanjet aircraft in the 4-place configuration over a period of 3 years, the first delivery projected in the fourth quarter of 1999. The value of this pending sale without modifications that may be required by ESSI is US$5,625,000 (Canadian $8,325,000). Alberta Aerospace is confident that this will be the first of numerous sales based upon the extreme interest being shown by prospective customers for both the 2-place and 4-place airplane. Mill City will continue with the exploration of its recently acquired mining property in Mexico, and believes that diversification into the aerospace business will be of benefit to all shareholders. -30- FOR FURTHER INFORMATION PLEASE CONTACT: Mill City International Inc. Larry D. Revitt President (403) 640-0110 (403) 640-4024 (FAX) millcity@cadvision.com millcitygold.com or Alberta Aerospace Corporation Raymond Johnson President (403) 250-3321 (403) 250-3851 (FAX) The Vancouver Stock Exchange has neither approved nor disapproved the information contained herein.