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Gold/Mining/Energy : St. Genevieve Resources (SGV.T & SGV.M) -- Ignore unavailable to you. Want to Upgrade?

To: philip trigiani who wrote (130)	4/30/1998 8:26:00 PM
From: philip trigiani	Read Replies (1) \| Respond to of 140

Attention Business/Financial Editors: CREDITORS OF ST. GENEVIEVE AND KWG ACCEPT PLANS OF ARRANGEMENT MONTREAL, April 30 /CNW/ - St. GeneviŠve Resources Ltd. (''St-GeneviŠve'') and KWG Resources Inc. (''KWG'') (collectively, the ''Companies'') announced today that their creditors have voted, at the creditors' meetings held this morning, in favour of their respective plans of arrangement filed under the ''Companies' Creditors Arrangement Act.'' In the case of St. GeneviŠve, nine classes of creditors voted unanimously and one class voted with a 98% majority. In the case of KWG, seven classes of creditors voted unanimously and one class voted with a 99% majority. The plans of arrangement have as their main objective the sharpening of the Companies' focus on key projects and the generating of sufficient funds to continue operations. Also, they provide for the issuance of treasury shares by the Companies in repayment of certain debts owing by each; however, the shares to be so issued may only be issued in trust to the Monitor appointed under their respective plans of arrangement who may in turn only release such shares to the creditors upon the clearance by each of St-GeneviŠve and KWG, respectively, with the Quebec Securities Commission of a prospectus qualifying their issuance. The Companies are now largely debt free and, subject to regulatory approval, will launch rights issues pursuant to which each company shall issue to its respective shareholders rights to subscribe to additional shares in its capital stock. Negotiations with various parties are underway with a view to backstopping all or part of these rights issues. The rights issues, should they be fully subscribed, will generate gross proceeds to the Companies of approximately $20 million, i.e. $8 million for St. GeneviŠve and $14 million for KWG. These funds will be used to develop the Companies' projects, to settle current indebtedness and for working capital. The shareholders' meetings of the Companies and the special shareholders' meeting of Emerging Africa Gold (EAG) Inc. which were adjourned on April 14, 1998, will be reconvened at 10:00 a.m. on May 13, 1998, at 630 Ren‚-L‚vesque Blvd. West, 16th Floor, Montreal, Quebec, Canada, H3B 1S6, in order that they may be formally terminated. St. GeneviŠve and KWG are mining exploration companies currently trading (without quotation) on CDN under the symbols SGVE and KWGR. St. GeneviŠve and KWG have respectively 86,086,233 and 36,036,070 issued and outstanding shares. NO REGULATORY AUTHORITY HAS APPROVED NOR DISAPPROVED THE CONTENT OF THIS PRESS RELEASE -0- 04/30/98 For further information: Mary Peschka, St. GeneviŠve Resources Ltd., (416) 941-8709 or Jacques Rossignol, Lapointe Rosenstein, (514) 925-6336 -------------------------------------------------------------------------- Release sent courtesy of Canada NewsWire Portfolio Email. To update your email portfolio, point your web browser here: portfolio.newswire.ca Canada's Business Report Segments of Canada's Business Report can now be heard on the CNW web site (www.newswire.ca) in streaming audio. Canada's Business Report is a new live radio program that delivers time-critical information on stock market activity, mutual funds and bonds, changes on the exchanges and independent business issues. The half-hour report airs daily Monday to Friday from 6:30 p.m. - 7 p.m. (EDT) on Talk 640 AM in Toronto. Hosted by well-known Canadian broadcaster Ron Adams, Canada's Business Report is a regular source of information for amateur and professional investors. --------------------------------------------------------------------------