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Gold/Mining/Energy : International Tournigan(ITG.V)announces major discovery -- Ignore unavailable to you. Want to Upgrade?

To: rdww who wrote (255)	4/28/1998 12:48:00 PM
From: MWS	Read Replies (1) \| Respond to of 347

Here is the news - trading should resume today: $7m financing; resumption of trading; advancement of Peru plans International Tournigan Corporation ITG Shares issued 16,553,331 Feb 27 close $0.73 Tue 28 Apr 98 News Release Mr. A.E. Daem reports International Tournigan has entered into letters of engagement for an offering of up to $7-million of special warrants. In addition, ITC has been advised by the VSE that ITC has provided the exchange with sufficient information for ITC's common shares to resume trading on the VSE. The common shares were previously halt traded as part of ITC's announcement in Stockwatch on Mar. 4, 1998 that it had entered into an option agreement to acquire a 100 per cent interest in the Berenguela project in southern Peru from Kappes, Cassiday & Associates of Reno, Nevada. ITC has entered into a letter of engagement with each of Taurus Capital Markets and Global Securities to act as agents on a best efforts basis for an offering of a total of 7,000,000 special warrants of ITC at $1.00 per special warrant. Each special warrant will, upon exercise and without payment of additional consideration, entitle the holder to receive one unit of ITC, with each unit comprised of one common share and one whole warrant. Each whole warrant will entitle the holder to purchase one share of ITC at $1.00 the first 12 months from the closing of the sale of the special warrants and at $1.15 thereafter until expiry of the warrants two years after the date of closing of the offering of special warrants. ITC has agreed to file a prospectus to qualify for distribution the units underlying the special warrants. In the event the prospectus is not receipted by applicable regulatory authorities prior to 120 days after the closing of the sale of special warrants, each special warrant shall become exerciseable for an additional 1/10th of a unit. Taurus and Global will offer for sale 3,000,000 and 4,000,000 special warrants, respectively. The agents will be paid a cash commission equal to 8 per cent of the proceeds raised and will receive agents' warrants entitling them to purchase such number of shares equal to 10 per cent of the number of special warrants sold. The agents' warrants will be exercisable at $1.50 for 12 months from the date of closing of the sale of special warrants and at $2.00 thereafter until expiry of the agents' warrants two years after the date of closing of the offering of special warrants. Exchange will resume trading of ITC on April 27. The company has provided the exchange with the information it requested about the Berenguela project to permit this resumption in trading. Subject to meeting other exchange requirements, ITC is moving forward with its plans to acquire the Berenguela project. Information provided to the VSE by ITC includes the following key points: The Berenguela project in southern Peru is a mineral deposit containing an indicated resource of 14 million tonnes, assaying 125 grams silver per tonne, 1.3 per cent copper and 18 per cent manganese, according to studies conducted by Mineral Consulting Services, in Aug. 1997. An independent review of the process flowsheet and capital costs was conducted by O'Kane Consultants. The Berenguela property was acquired in 1995 by Kappes, Cassiday & Associates, as part of the privatization program started by the national mining company MineroPeru. ITC has entered an option agreement to purchase 100 per cent ownership of Berenguela through the issuance of up to eight million shares of ITC and warrants to purchase up to two million shares of ITC, plus a cash payment of $770,000 (U.S.), to Kappes, Cassiday. Kappes, Cassiday has conducted an intensive program of laboratory testing and project evaluation, leading to development of a viable flowsheet. A total of $5-million (U.S.) is estimated to be required for the next phase, directed toward a bankable feasibility study. ITC estimates that construction of processing facilities could begin before the end of 1999, with production the following year. O'Kane Consultants has estimated that capital cost to bring the Berenguela project to production is estimated to be $146-million (U.S.), including contingencies.